beer bits

[J2jurado]

Foster's 1st-Half Profit Seen Rising 2% as Olympic Charges Bite

Melbourne, Feb. 9 (Bloomberg) -- Foster's Brewing Group Ltd., Australia's No. 1
brewer, probably saw its first-half earnings little changed as costs associated
with sponsoring the Sydney Olympics offset rising beer and wine sales.

The maker of Victoria Bitter and Foster's Lager brand beers probably made
A$248.1 million ($133 million) in the six months to Dec. 31, compared with the
year-earlier A$243.3 million, according to a Bloomberg News survey of nine
analysts. The forecasts ranged from A$235 million to A$275 million.

``There's a few one-offs in this year's result including expenditure at the
Olympics'' that will dent profit growth, said Brett Harwood, an analyst at
Australian Equities Research, who rates Foster's as a cheap stock at current
prices.

In the last few years, Melbourne-based Foster's has been moving beyond its
beer-making roots. Last year, it moved into the California wine market with the
A$2.6 billion cash and debt offer for Napa, Calif.-based Beringer Wine Estates
Holdings Inc.

Though Foster's beer unit still generates about three- quarters of earnings,
the company has been investing in new businesses such as wine, spirits, global
wine selling clubs and hotels with gaming businesses.

Analysts said Foster's fiscal first-half result will include additional costs
as much as A$25 million relating to its sponsorship of the Sydney Olympic
Games, held in September. Foster's was the official beer supplier for the
event.

The company will also incur higher-than-usual interest costs because of the
assumption of debt for the Beringer acquisition in the half, analysts said.

Competition

They said beer and wine sales should rise in the first half, though probably
won't match the growth rates achieved last year when millennium celebrations
spurred sales.

Foster's wine business, Mildara Blass, will probably show the biggest increase
in profit, analysts said, led by offshore sales of its key brands such as Wolf
Blass and Yellowglen.

Carlton and United Breweries Ltd., the Australian brewing operation that
usually contributes most of Foster's profit, is likely to report a smaller
profit as competition heats up. Foster's accounts for about 56 percent of total
beer sales in Australia and competes with Lion Nathan Ltd.

Lion's 42 percent share has remained little changed for several years, though
the company has been making market share gains in Victoria state, where it
invested about A$100 million last year.

Draft Beer Sales Fall

Industry beer sales in the six months to Dec. 31 have been mixed, with sales of
packaged products rising and beer sold in a pubs falling. That's mainly because
the Australian government increased taxes on draft beer served in a pub or bar
by as much as 11 percent on July 1, 2000.

The introduction of a 10 percent goods and services tax on July 1 and the
slowing Australian economy has also dented brewer sales.

``What I'll be looking out for is seeing what's happening in the Australian
beer operations,'' said Harwood. ``We've seen the growth rate of the Australian
beer operations come back from 5-to- 7 years of 10 percent-plus growth. Also,
everyone will be wanting to hear news of the progression of the Beringer
acquisition.''

Foster's, which makes the nation's top-selling beer brand Victoria Bitter, will
release its earnings at about 11:00 am, Melbourne time, Monday. Chief Executive
Ted Kunkel will hold a media conference at midday.

Foster's shares rose 1 cent to A$4.55 today. They have risen about 14 percent
in the past year.

Coors 4th-Qtr Profit Rises 24% on Higher Beer Sales

Golden, Colorado, Feb. 8 (Bloomberg) -- Adolph Coors Co., the third-largest
U.S. brewer, said fourth-quarter earnings rose 24 percent because of increased
sales of Coors Light, Killian's Red and other beers.

Profit from operations rose to $15.2 million, or 40 cents a share, from $12.2
million, or 33 cents, a year earlier. Sales rose 7.5 percent to $582 million
from $541 million.

Coors hasn't been able to meet unexpectedly high demand in the past year for
its beers. The brewer this year plans to produce more long-neck bottles, which
are more expensive to make and less profitable, said Chief Financial Officer
Timothy Wolf on a conference call. Still, the company said it plans to keep
costs under control.

``Long-neck bottles are a very popular package with consumers. That's what the
market demands,'' said spokesman Kevin Caulfield.

Coors shares fell $2.42 to $67.66. The stock has fallen 16 percent this year.

Worldwide beer shipments at Coors increased 4.8 percent to 5.5 million barrels.
Larger rival Anheuser-Busch said yesterday worldwide beer volume rose 1 percent
to 24.4 million barrels in the quarter. A beer barrel equals about 55
six-packs.

Golden, Colorado-based Coors was forecast to earn 39 cents, the average
estimate of analysts polled by First Call/Thomson Financial.

In the latest quarter, a pretax charge of $5.2 million from the closing of the
company's brewery in Spain made net income $12 million, or 32 cents a share.

Czech Budweiser raises output, revenues in 2000

PRAGUE, Feb 8 (Reuters) - Czech state-owned brewery Budweiser Budvar, locked in
a bitter row with Annhaeuser Busch over the Budweiser brand name, said on
Thursday its output and revenues soared last year on booming exports to the EU.

Revenues were up 14.1 percent at 2.67 billion crowns, while the output reached
1.35 million hectolitres, up seven percent, a company statement said.

It added exports shot up 101 percent to Germany where it sold 185,000
hectolitres, exports to Great Britain were up 106 percent at 89,000
hectolitres.

Since the early 1900s, the Czech brewer has fought numerous trademark battles
around the world with the U.S.-based brewer <<A
HREF="aol://4785:BUD">BUD.N</A>>, winning many in European countries, while
sharing the rights in others, such as Britain.

Budvar plans to sell 1.46 million hectolitres this year which should bring
revenues of 2.76 billion crowns.

The Czech government has said Budvar, "a part of family silver," is not for
sale.

The statement did not give any profit data. It posted a pre-tax profit of 478
million crowns in 1999.

Coors tops estimates but concerns hit shares

By Jessica Wohl

GOLDEN, Colo., Feb 8 (Reuters) - No. 3 U.S. beer brewer Adolph Coors Co. <<A
HREF="aol://4785:RKY">RKY.N</A>> said on Thursday its fourth-quarter income
increased 24 percent, beating forecasts, but a flat California beer market and
other factors raised concern and the stock fell.

"They were flat in California during this period with energy prices up and that
may persist for a while, until people adjust to whatever happens," ING Barings
beverage analyst Emanuel Goldman said. "California is one of their main
markets, but they're doing pretty well elsewhere."

One analyst, Caroline Levy at UBS Warburg, actually cut her rating on the stock
to hold from strong buy after the company's conference call.

"I didn't think it was a particularly high quality quarter," Levy said in a
telephone interview, noting the company's quarterly earnings were boosted by
more interest income than she expected.

Aside from talking about the California market in an afternoon conference call,
Coors said it is "cautiously optimistic" about pricing and expects its cost of
goods per barrel to be up "modestly" this year.

Coors shares, which had been up on the day before the call, finished down $2.42
at $67.66 Thursday. The stock, which in the past year has ranged from $37.38 to
$82.31, had traded as high as $72.40 before the conference call.

The parent of Coors Brewing Co., maker of Coors Light and other beers, said
fourth-quarter income, excluding special items, was $15.2 million, or 40 cents
per diluted share, up from $12.2 million, or 33 cents a share, a year earlier.

Results topped the average Wall Street analyst forecast of 39 cents per share,
compiled by First Call/Thomson Financial.

"I think maybe there are some misperceptions out there," Goldman said late
Thursday, as the shares continued their decline. "I think they're in good shape
going into this year."

Last month, Coors shares tumbled after unfavorable comments about the industry
by analysts, including a downgrade of the company's shares. Even so, Coors had
outperformed the broader Standard & Poor's 500 index <.SPX> by more than 45
percent over the past year.

Since last month's slip, a number of beverage companies have posted strong
fourth-quarter results, while those in other sectors have disappointed Wall
Street.

"In the context of the U.S. equities market ... these (beverage) companies are
somewhat heroic in the sense that they're delivering, if not exceeding,
earnings expectations," said Credit Suisse First Boston analyst Skip Carpenter.

MORE LONG NECK BOTTLES

During the call, Coors said it plans to increase its percentage of long neck
bottles, which cost more to produce and are less profitable than regular
bottles, to more than 80 percent of its bottle mix from just over 70 percent in
2000. It therefore expects to spend more on glass in 2001.

Coors said it sees a number of important cost factors in 2001, such as
expectations of slightly lower aluminum can costs and slightly higher glass
costs. Paper costs and agricultural costs are also factors, the company said.

Including special items, fourth-quarter net income was $12.0 million, or 32
cents per share, down 2.2 percent from $12.2 million, or 33 cents, a year
earlier.

The company took a $5.2 million pretax charge in the fourth quarter for closing
its brewery in Spain.

Net sales rose to $582.1 million from $541.5 million in fourth quarter 1999.
Sales volume grew 4.9 percent from a year earlier, although fourth quarter 2000
included an extra week. Without the extra week, sales volume rose 2.4 percent,
although distributors were only able to sell 1.2 percent more to retailers.

For all of 2000, Coors said its volume grew at twice the pace of the overall
industry.

On Wednesday, Anheuser-Busch <<A HREF="aol://4785:BUD">BUD.N</A>>, the world's
largest brewer, said its beer sales volume rose only 1 percent.

In January, Miller posted a 9.5 percent decline in U.S. underlying shipment
volume. Volume was hit by a drop in distributor inventories, higher retail
pricing and lower industry shipments, the company said.

For the 53-week fiscal year, Coors' net sales rose 8 percent to $2.4 billion.
Coors said the extra week did not materially affect its annual earnings.
Excluding special items, 2000 after-tax income rose 19.6 percent to $114.5
million and diluted earnings were up 19.5 percent to $3.06 per share.

"Looking ahead," Chairman Peter Coors said in a news release, "our goal in 2001
will be to continue our trend of consistently outpacing industry volume growth
and increasing profitability for our shareholders."

Femsa's Q4 seen pressured by weak beer sales

MEXICO DF, Feb 8 (Reuters) - Mexican brewery and bottling company Femsa's
<FEMSAUBD.MX> <<A HREF="aol://4785:FMX">FMX.N</A>> fourth-quarter earnings are
expected to be pressured by a fall in local beer sales, according to a Reuters
survey of four analysts.

Analysts lowered their forecasts for Femsa after the company warned last
December that its operating profits in the fourth quarter would fall by 8 to 10
percent compared with the year-ago period. The company said also that its net
sales during the period would grow at a rate of 7 to 9 percent.

According to the Reuters survey, Mexico's second largest brewer is expected to
report a 6 percent fall in local beer sales due to an unseasonably cold and
rainy season in northern Mexico, the company's principal market, and a change
in business strategy.

"It is going to be a disappointing quarter on the operating level," said
analyst Jose Refugio Bueno at local brokerage Finamex.

The Monterrey-based Femsa owns the Cuauhtemoc-Moctezuma brand and controls
Coca-Cola Femsa (KOF) <KOFL.MX> <<A HREF="aol://4785:KOF">KOF.N</A>>, Mexico's
leading Coca-Cola bottler <<A HREF="aol://4785:KO">KO.N</A>>, which also has a
presence in Argentina.

Femsa also has retail, packaging and logistics units.

Femsa is seen reporting in the fourth quarter sales volume in Mexico of 5,370
million hectoliters, down from 5,737 in the year ago period.

A hectoliter, or 100 liters, is the standard unit of measure in the Mexican
beverage industry.

Meanwhile, export volume is seen growing by 13 percent to 362,000 hectoliters
over the 0ctober through December period a year ago.

"Femsa will face a difficult base of comparison since its beer sales rose to
historic highs in the last quarter of 1999," according to a report by analyst
Raquel Lizarraga at BBVA Securities.

Femsa sells beer under the commercial brands Tecate, Tecate Light, Carta
Blanca, Superior, Sol, Dos Equis, Dos Equis Lager, Indio and Bohemia.

However, strong results at Coca-Cola Femsa and Femsa's retail unit are likely
to make up for weakness in the beer and packaging units under the company's
consolidated fourth quarter results.

"We are expecting an outstanding fourth quarter for Coca-Cola Femsa," said
analyst Victo Hugo Flores at Interacciones Casa de Bolsa.

Flores is projecting that KOF's sales and operating profit will grow by 26.2
percent and 44.2 percent respectively in the fourth quarter.

Femsa's retail division, led by the Oxxo convenience stores, is expected to
post healthy results, fueled by growing Mexican private consumption and the
unit's aggressive expansion strategy.

Oxxo ended 2000 with 1,481 stores nationwide, an increase of 284 stores over
1999.

Femsa is expected to report earnings per share of 0.64 peso in the fourth
quarter, according to the Reuters survey.

Femsa is expected to report its results after the market close on Friday.

The following table lists average fourth quarter results expected by a survey
of four analysts with comparable 1999 figures.

All figures are in pesos based on consolidated results adjusted for inflation
and proportional to analysts surveyed

Oct-Dec Oct-Dec Change

2000 1999 pct

Revenues 12,372.0 mln 11,638.79 mln +6.3 pct

Operating profit 1,820.5 mln 2,016.39 mln -9.7 pct

Operating Margin 14.3 pct 17.4 pct -310 bps

EBITDA 2,598.0 mln 2,744.0 mln -5.3 pct

Net Profit 686.8 mln 820.0 mln -16.3 pct

Sales Volume

in hectoliters

Domestic 5.37 mln 5.73 mln -6.4 pct

Export 362,380 319,000 +13.6 pct

Total 5.7 mln 6.1 mln -5.3 pct

Lion Nathan Has 46.5% of Montana as Investors Sell

Sydney, Feb. 9 (Bloomberg) -- Lion Nathan Ltd., Australia's second-largest
brewer, moved closer to gaining control of Montana Group N.Z. Ltd. after
winning acceptances from investors for a further 18.2 percent of New Zealand's
largest winemaker.

Sydney-based Lion, which yesterday topped a bid by Allied Domecq Plc, with an
offer that values Montana at NZ$1 billion ($441 million), said it increased its
stake to 46.5 percent from 28.3 percent. It said it can't boost its stake to
its target 50.1 percent until a trading halt on Montana stock is lifted.

Lion, 46 percent-owned by Kirin Brewery Co., Japan's largest beermaker, wants
control of a winemaker which dominates one of the world's highest-rated
sauvignon blanc production regions. Investors said it wasn't clear if Allied
will be able to make a counter bid.

``I presume the deal is effective,'' said Stephen Walker, who holds Montana
among the NZ$1.6 billion ($700 million) of equities he manages for AMP
Henderson Global Investors New Zealand Ltd. AMP agreed to sell its Montana
stock to Lion.

Earlier this week, Allied, the world's second-largest liquor company, offered
to buy all of Montana at NZ$4.40 a share, valuing the winemaker at NZ$1
billion. The bid was supported by the Montana board. Lion yesterday topped
Allied's bid, offering NZ$4.65-to-NZ$4.80 a share for Montana.

Montana Trading Suspended

Lion's New Zealand Wines & Spirits Ltd. unit distributes Allied's products in
New Zealand, including Beefeater brand gin and Ballantine's scotch whisky. Lion
bought Allied's 25 percent stake in Wines & Spirits in August 1999. It also
wants to expand into new beverage-related businesses, as sales from its key
beer- making operations slow.

Trading in Montana shares was today suspended by the New Zealand Stock
Exchange, which wants to be sure investors have enough information about rival
offers for the stock. The Australian Stock Exchange halted trade in Montana's
Australian shares.

Yesterday, Lion gained a waiver from the New Zealand Stock Exchange allowing it
to begin buying shares on market at NZ$4.65 a share today rather than Monday as
required under listing rules. The rules require a delay to allow investors to
assess their position and for any counter-bids to be prepared.

Montana's independent directors asked the exchange to revoke the waiver because
Allied had planned to make a counter-bid. ``Allied has advised us that they
have not had the time to prepare a counter-bid,'' the directors said in a
statement.

New Zealand Regulations

``Once the stock exchange granted the waiver, Lion was able to deal and it
entered into an conditional purchase agreement,'' said AMP's Walker. The waiver
allowed lion to purchase shares after midnight.

Lion is taking advantage of takeover regulations in New Zealand that allow an
investor to gain control of a company by making a partial takeover bid in which
most shareholders will be unable to participate.

``We got as much as we can from institutions and we now have to wait for the
market to open so we can execute the second part of it,'' said Lion spokesman
Warwick Bryan. ``We need to get to a 50.1 percent before we can make any
decisions about where we go next.''

Montana's independent directors said they preferred an offer be made for all or
part of every shareholders' stake rather than a partial offer which could be
quickly filled, most likely by institutional investors.

Independent Directors Object

Independent directors ``would have recommended that shareholders accept such a
pro rata offer'' they said. Lion declined such a proposal, they said.

Allied said it has waived a condition of its offer that Montana Chairman Peter
Masfen accept on behalf of his 20 percent stake. A remaining condition is that
Allied hold at least 50.1 percent of Montana by late Monday. Masfen had
previously said he would accept the Allied offer.

Bristol, England-based Allied, which recently purchased the Mumm and
Perrier-Jouet champagne makers, has been seeking smaller acquisitions after
dropping out of the bidding for Vivendi Universal SA's Seagram drinks unit.

Shares in Lion fell 5 cents, or 1.3 percent, to A$3.85. Montana last traded at
NZ$4.67 yesterday. The stock closed at 15.6 percent, after earlier surging to
an 11-year high NZ$4.75.

Lion is being advised by Credit Suisse First Boston and Montana is being
advised by J.B. Were & Son, while Goldman Sachs Australia LLC is advising
Allied.

Coors Earnings Dip 2 Percent

Feb. 8 GOLDEN, Colo. (AP) - Fourth quarter earnings at Adolph Coors Co. dipped
2 percent, reflecting a one-time charge for closing a brewery in Spain.

The beer company said Thursday its net income was $12 million, or 32 cents per
share, for the three months ended Dec. 31. That is slightly down from the $12.2
million, or 33 cents per share, reported in the same period last year.

The fourth-quarter results included a $5.2 million pre-tax charge for closing
the brewery in Spain. The company is getting the beer for European markets from
its U.S. operations.

Excluding the charge, the company earned $15.2 million, or 40 cents per share.
Analysts surveyed by First Call/Thomson Financial were expecting 39 cents per
share.

Coors Brewing chairman Peter Coors has said closing the brewery in Spain was
part of an effort to focus on areas with more potential for growth and profits.
Coors reported some of the expenses related to the closure during the second
quarter.

Sales for the fourth quarter rose 7.5 percent to $582.1 million, compared with
$541.5 a year ago.

Peter Coors said 2000 was the fifth consecutive year the company achieved
double-digit earnings growth and the fourth straight the company's volume
outpaced industry growth.

``We met unprecedented demand for our products while our capacity was
constrained during peak season, managed significant cost challenges and
continued to invest aggressively in our sales capability and brands,'' he said.
``The industry environment continues to be as favorable as at any time in the
past few decades.''

For the year 2000, the company reclassified finished product freight cost by
reporting those expenses in cost of goods sold rather than as a reduction in
gross sales. That moved $197.3 million of expense from gross sales to cost of
goods sold.

Coors shares fell $2.42 to $67.66 in trading Thursday on the New York Stock
Exchange.

For the fiscal 2000, earnings increased 18.8 percent to $109.6 million, or
$2.93 per share, from $92.3 million, or $2.46 per share, in 1999.

Sales for the year rose 8 percent to $2.4 billion, compared with $2.2 billion
in 1999.

Lion ups bid for Montana NZ in duel with Allied

By Rodney Joyce

WELLINGTON, Feb 8 (Reuters) - A bidding war for New Zealand wine maker Montana
Group (NZ) Ltd bubbled into life on Thursday when Australasian brewer Lion
Nathan launched a fresh bid for control of the company.

Lion offered NZ$4.65 per share for up to 50.1 percent of Montana, trumping a
rival full bid from the world's second largest wine and liquor company Allied
Domecq at NZ$4.40 per share.

The Lion bid, which valued Montana at NZ$998 million ($440 million), was up
from a previous indicative bid range of NZ$3.20 to NZ$3.80 per share it set
late last year.

While bidding at NZ$4.65, Lion left the way open to go as far as NZ$4.80 per
share and investors took the hint, pushing up Montana's share price beyond the
current Lion bid to a high of NZ$4.75 -- a gain of 71 cents or 17.6 percent
from where the stock closed on Wednesday prior to Allied's surprise bid.

At the market close Montana shares sat at NZ$4.67, up 63 cents, on hefty
turnover of NZ$26.7 million.

Lion holds 28 percent of Montana while Allied Domecq starts virtually from
scratch -- although it has acceptances for Montana chairman Peter Masfen's 20
percent.

Allied later said Lion's partial offer would disadvantage Montana's minority
shareholders who missed out on the offer and would not be allowed under changes
to takeovers legislation due to be introduced later this year.

Lion's offer was also at odds to previously reported statements that it
considered a valuation range of NZ$4.16 to NZ$4.64 as highly ambitious, Allied
said.

"Allied is committed to growth through acquisition but only at prices which
represent value for our shareholders. While the Montana business is attractive
it is not attractive at any price," Allied chief executive Philip Bowman said
in a statement.

Montana's chairman of independent directors, Barry Neville-White called for
Lion to make its offer on a pro-rata basis if it planned to stick to its limit
of 50.1 percent threshold.

"This should be done for the sake of the integrity of the market, and in
fairness to minority shareholders," he told Reuters.

Independent directors also announced the company was tracking previously
published forecast operating earnings before interest and tax (EBIT) -- which a
company official said was NZ$85 million for the 15 months to September 30,
2001.

Montana shares have more than doubled from a low of NZ$1.70 before Lion started
buying into the company last May -- against a flat performance by the wider
NZSE-40 Capital Index.

LION ROARS FOR DOMINANCE

Lion said it was serious about winning the battle for Montana, which has more
than 5,000 acres in vineyards and a half share of New Zealand's NZ$100 million
wine export industry.

"Lion Nathan acquired its position in Montana for strategic reasons and is not
a seller of its 28 percent stake," Lion chief executive Paul Lockey said in a
statement.

"In fact, we are committed to increasing our holding to 50.1 percent and will
be standing in the market."

Lion, required as an insider to give two days notice to change its bid price,
obtained a waiver from the NZ Stock Exchange allowing it to enter the market on
Friday and vary its bid price with just two hours notice.

Lion has regulatory permission to seek full ownership of Montana and a Lion
spokesman did not rule this out, although changing the size of the bid would
require 15 days notice.

Masfen, who said on Wednesday he preferred the Allied offer partly because it
was open to all shareholders rather than a partial offer, was not immediately
available for comment.

DUEL SEEN DEVELOPING

The small size of Montana -- with annual revenues of NZ$449 million -- hid a
greater prize for both Allied and Lion which they would duel over, analysts
said.

Montana has recently bought its main New Zealand rival, Corban's, and sizeable
synergies were expected to be realised.

As well, it is one of only four sizeable entry points into the Australasian
wine sector -- alongside Southcorp, BRL Hardy and Foster's Brewing Group's
Mildara.

All have been mentioned as potential takeover targets in recent months, but as
yet, no buyers have emerged.

Lion could have accepted the Allied Domecq offer and banked a NZ$100 million
windfall on its holding, bought at an average NZ$2.39 per share, but having a
foothold in the wine industry was more important to it, said ABN AMRO analyst
John Lake.

"For a company like Lion Nathan which has cash pumping through its veins given
that its a brewer and a great cash business, what would it actually do with
that cash?," he asked.

Even at its current bid price of NZ$4.65, the average entry price for Lion to
gain control was only NZ$3.37 a share.

Lion, 45 percent owned by Japan's Kirin Breweries, needed growth and wine
fitted well with the company, Lake said.

"If they had to surrender their stake it's highly unlikely they'll ever get the
chance to get a reasonable access into the Australasian wine market again."

However fund manager Armstrong Jones, which holds 3.4 percent of Montana, also
doubted that Allied would yet give up the fight.

"I can't really believe that they'd have one go and disappear," said senior
investment manager Amanda Smith.

"You've got a strategic asset with two people wanting to buy it so at the
moment we're just sitting back and letting them play the game."

Allied Domecq -- with sales of 2.6 billion sterling ($3.78 billion) in the year
to August 2000 -- recently bought two French champagne houses. ($-NZ$2.27, one
pound sterling-$1.4540)

Venezuela stock watchdog okays Polar takeover bid

CARACAS, Feb 8 (Reuters) - Venezuela's National Securities Commission (CNV)
gave the green light on Thursday to a takeover bid by local industrial group
Empresas Polar for consumer goods maker Mavesa <MAV.CR> <<A
HREF="aol://4785:MAV">MAV.N</A>>, CNV President Aida Lamus said.

Lamus told journalists that the CNV's board had voted by a margin of 3-2 to
approve the launch of the friendly takeover offer, initially unveiled by Polar
last month.

The offer can now take effect at any time, she added. Privately-owned Polar is
offering 99 bolivars a share, or $8.50 per American Depositary Receipt, for up
to 100 percent of Mavesa's stock, valuing the company at around $510 million.

Privately-owned Empresas Polar, which is Venezuela's leading food and drinks
group with interests in oil and telecommunications, said it has already reached
a deal with shareholders controlling 38.49 percent of Mavesa.

The offer is subject to Polar receiving offers for at least 65 percent of
Mavesa shares.

Mavesa stock gained 1 percent Thursday to close at 100 bolivars a share, just
above Polar's offer price, as investors speculated that Swiss food giant Nestle
<NESZn.S> might be about to launch a rival bid for the company.

Lamus said she had voted against the approval of Polar's takeover bid due to a
clause in the contract which specifies that Mavesa must compensate Polar for
1.5 percent of the sale price if a rival bid emerges.

"That clause is unfair and anti-competitive," Lamus said.

Mavesa, which was founded in 1949 and is one of only three Venezuelan companies
listed on the New York Stock Exchange, saw its profits jump 68 percent to $36.7
million last year.

Polar, which produces Venezuela's most popular beer and has a joint venture
with PepsiCo <<A HREF="aol://4785:PEP">PEP.N</A>> to market soft drinks such as
Pepsi Cola and 7-Up, would finance 60 percent of the cost of the takeover bid
itself.

Pyramid Breweries Inc. Reports Second Consecutive Year of Increased Sales;
Company Also Records Earnings Improvement

SEATTLE--(BUSINESS WIRE)--Feb. 8, 2001--Pyramid Breweries Inc. (Nasdaq:<A
HREF="aol://4785:PMID">PMID</A>), today reported its second consecutive year of
sales growth, with net revenues increasing by 6% to $28.6 million for 2000.

In addition, for the first time since 1996, the company reported net income for
the year.

Net income for 2000 was $33,000, which represents a $616,000 improvement over
the net loss for 1999 of $583,000 (adjusted for non-recurring charges of $3.8
million in 1999). Earnings before interest, taxes, depreciation, amortization
and non-recurring charges increased 14% to $2.5 million for 2000. The
improvement in earnings was due to higher sales for Pyramid beer, Thomas Kemper
soda and the alehouse division, and substantial operating efficiency gains in
both the beverage and alehouse divisions.

"I am very pleased to be able to report to our shareholders this substantial
progress after my first full year of service as the company's CEO," said Martin
Kelly. "Our results reflect the impact of the strategic changes we made in the
fourth quarter of 1999, improving trends in the craft beer and soda categories,
as well as the exceptional efforts of our employees."

The beverage division recorded a 7% increase in total shipments and strong
performances on both core brands. Shipments of the flagship Pyramid beer brand
were up 6% to 101,900 barrels for 2000, and Thomas Kemper soda shipments
increased by 30% to 38,400 barrels. During the year, the company discontinued
the Monx brand, and retrenched the Thomas Kemper beer line, which recorded a
shipment decline of 31%. Total shipments of all beer and soda brands increased
7% to 148,300 barrels for 2000, the highest level in company history.

The alehouse division reported a sales increase of 7% for 2000, with both the
Seattle and Berkeley alehouses reporting increased sales. "We made significant
improvements in labor and food cost management in the alehouse division, which
are important developments to our alehouse business model as we continue to lay
groundwork to expand this division to new operating locations," said Mr. Kelly.

The company's gross margin for 2000 was $7.6 million, up 15% over the prior
year due to increased revenues and greater operating efficiencies. As a percent
of sales, gross margins increased to 26.5%, from the 24.3% recorded in 1999.
Labor costs in Pyramid's breweries declined approximately 9% while total hours
worked declined approximately 13% for 2000. These reductions in labor costs and
hours worked were made while total shipments for the year increased 7%.

Cash provided by operating activities increased to $2.5 million, or $0.32 per
share, for 2000, compared to $1.9 million or $0.23 per share for 1999.
"Pyramid's financial position is exceptionally strong. Our cash balance
remained constant at about $6.4 million from 1999 to 2000, about $0.81 per
share, even though we paid $1.3 million in dividends to our shareholders,
repurchased $774,000 of our common stock, and invested $808,000 in equipment
and property upgrades and replacements," commented Wayne Drury, Chief Financial
Officer.

For Pyramid's fourth quarter, net sales increased 3% to $6.8 million compared
to $6.6 million for the same quarter of 1999. Total beverage shipments
increased 4%, representing the ninth consecutive quarterly increase for
Pyramid. Both core brands showed increases for the quarter, with Pyramid beer
shipments reaching 26,400 barrels, a 7% increase. Thomas Kemper soda shipments
of 8,100 barrels represented a 9% increase for the fourth quarter. Sales in the
craft beer industry generally reflect seasonality, with the first and fourth
quarters historically being the slowest and the rest of the year typically
demonstrating stronger sales.

Gross margin for the fourth quarter increased 6% to $1.7 million, increasing
faster than sales due to greater efficiencies. Marketing expenses were $460,000
higher than for the same quarter of the prior year primarily due to the
development and initiation of a new Pyramid brand awareness campaign which
includes substantial outdoor advertising in the Seattle and Sacramento markets.
The new outdoor advertising program will run through the first part of 2001.

The net loss for the fourth quarter of 2000 was $565,000 compared to a net loss
of $4.0 million for the same quarter of the prior year. The net loss for the
fourth quarter of 1999 included non-recurring charges of $3.8 million. Adjusted
to exclude these non-recurring charges, the net loss for the fourth quarter of
1999 was $260,000. The increase in the net loss for 2000 of $305,000 over the
adjusted net loss for 1999 was primarily due to the increase in marketing
costs.

"We are very excited about the potential of the new marketing program. The
company is in a strong position and we have elected to invest in brand building
to further the sales and shipments momentum gained earlier in the year. The
intent is to see further sales growth in future periods as a result of this new
marketing program," said Martin Kelly.

Pyramid Breweries Inc. is one of the leading brewers of specialty,
full-flavored beers and sodas, produced under the Pyramid and Thomas Kemper
brand names. Pyramid also operates two local breweries and restaurants, under
the Pyramid Alehouse name, in Seattle, Washington, and Berkeley, California.
For more information, visit www.PyramidBrew.com.

Egypt's OPTD to sell stake in Gouna Beverage

CAIRO, Feb 8 (Reuters) - Egypt's Orascom Projects for Touristic Development
(OPTD) is to sell its Gouna Beverage Group, a local producer of alcohol, a
Gouna Beverage official said on Thursday.

"Gouna Beverage Group will definitely be spun out of OPTD," said Youssef
Hammad, marketing director at Gouna Beverage. "OPTD is refocusing on its core
tourism and development business."

Hammad told Reuters that several bidders were interested in acquiring either
part or all of Gouna Beverage Group, in which OPTD owns a 35 percent stake. The
Sawiris Family and Lebanon's Debbane family are among the other shareholders.

Hammad did not disclose the company's value or who the bidders were, citing
confidentiality agreements.

Orascom Group's Gouna Beverage Group makes Obelisque wines, Sakara beer and is
the local producer for Lowenbrau. The company launched its line-up in April
1999.

Company sales in 2000 totalled 70,000 hectolitres (7 million litres) of beer
and 1.2 million bottles of wine, a 250 percent growth from the previous year,
said Hammad.

"After one and a half years, we have achieved approximately 20 percent of the
alcoholic beer market and 40 percent of the wine market," he said.

Vermont wants to raise beer tax 1 ct a can-WCAX

NEW YORK, Feb 8 (Reuters) - Vermont Gov. Howard Dean has recommended paying for
a $3 million anti-heroin program by increasing the beer tax about a penny a
can, WCAX television station said on Thursday.

Retailers immediately criticized the plan, which would increase the per-gallon
tax on beer from 26 to 36 cents -- a 40-percent increase. The station also said
the plan would give Vermont the highest beer tax in the Northeast.

In Montpelier, a Senate committee on Wednesday heard testimony from police and
drug treatment workers about the need for more funding to break the cycle of
heroin abuse and addiction.

Canadians outraged by court award to drunk driver

By Amran Abocar

TORONTO, Feb 8 (Reuters) - Canadians are reacting with disbelief and outrage
after a court ruled a drunk driver's accident was partly her employer's fault
and ordered the company to pay her C$300,000 ($200,000) in damages.

Don Jerry, Linda Hunt's employer and owner of Sutton Group realty, said on
Thursday he wants "very badly" to appeal the decision that he should have gone
as far as calling the police to stop Hunt from getting behind the wheel of her
car after a Christmas wine and cheese party in 1994.

An Ontario court found the firm 25 percent responsible for the accident.

A decision to appeal is now in the hands of Jerry's insurance company, Zurich
Canada, which would be paying the judgment.

In a statement late on Thursday, the insurer said it was "carefully reviewing
the judge's decision to determine whether or not we will take further action to
appeal."

Hunt, 50, who suffered serious injuries in the crash, had a few drinks at the
afternoon party, left the office in Barrie, Ontario, 90 km (55 miles) north of
Toronto, and went on to a pub with a group of friends. She later drove home in
stormy conditions and collided head on with a truck at about 9 p.m. She was
convicted of impaired driving.

"If an accident had happened shortly after she left my office, I could accept
some responsibility. But this happened five hours after she had a drink in my
office," Jerry told Reuters in a telephone interview.

But, in a ruling this week, the Ontario judge said it did not matter what time
Hunt crashed because Jerry -- who left the office party before Hunt and had
offered to call her husband to pick her up, drive her home himself or give her
taxi fare -- should have done more, even called the police.

The judge said Jerry "ought to have anticipated the possible harm that could
have happened to her and, in fact, taken positive steps to prevent her from
driving home."

The ruling has prompted a flurry of editorials, letters and calls to talks
shows from an outraged public that maintain the decision -- which has been
branded "ridiculous," "unrealistic" and a "legal travesty " -- turns employers
into babysitters.

Roger Oatley, Hunt's lawyer, said the law was properly applied to the facts of
the case.

"The employer provided the alcohol and stood by and allowed his employee to get
in the car when she had a blood alcohol level over twice the legal limit," he
said in a telephone interview from Barrie.

The ruling, which appears to set a precedent in making employers responsible
for employees long after they have left the premises, has sent a chill through
corporate Canada.

"It opens a whole bunch of things that just don't seem rational," said the
owner of a Toronto consulting firm. "Where does that lead? For a summer picnic,
do you issue life jackets and hard hats? It could get silly.

"Or do you just scrap all staff entertainment? That would be a pity, but it
certainly makes you think twice before there are events like that."

Letters to newspapers questioned what more Jerry could have done, with some
arguing that seizing her car keys could be interpreted as theft while bundling
her into a taxi, would be tantamount to kidnapping.

"Such absurdities are probably necessary in this epoch of expansive litigation,
but in its conclusion that 21st century Canadians need to be nannied on their
night out, it is a lamentable comment on the way we choose to govern
ourselves," the National Post newspaper wrote in an editorial.

U.S. funeral industry poised for baby boomers

By Alan Elsner, National Correspondent, Feb. 8

YORK, Pa (Reuters) - The American funeral, often satirized as ostentatious and
decried as needlessly expensive, is poised to reinvent itself as the baby boom
generation grows older and begins to confront its final passage.

"Our business is show business and hospitality. Every funeral service we
provide is like opening night, except that we don't get to do it a second time,
so we have to get it right," said Ernie Heffner, who owns and runs 17 funeral
homes in Pennsylvania and New York.

"When my father started in the business, the only difference in funerals was,
which casket did you want. Today we have no idea what a family would like to do
until we sit down and start talking to them. People may not be sure exactly
what they want, but they are very clear what they don't want: cookie-cutter,
impersonal funerals, all alike," Heffner said.

"Everybody who attends a service is waiting to feel the experience. We have to
choreograph that experience."

Heffner's catalog now offers a choice of more than 60 coffins. They come in
bronze, copper, stainless steel, mahogany, cherry, maple, oak, pecan and poplar
and range in price from just under $1,000 to $8,200.

When it comes to crematory urns, the choice is virtually endless. There are
urns that double as clocks or sundials, urns that look like golf bags or empty
boots or pheasants in flight or leaping dolphins.

Then there is the King Tut replica, cast in bronze and gold-plated, which costs
$2,895 and serves as a living room adornment. And there are "sounds of peace"
wind chimes -- soprano, alto or tenor -- with "water-resistant pewter
compartments" for the ashes of the deceased.

A big seller is "keepsake" jewelry containing a lock of hair or ashes from the
deceased: $79 for a pewter teddy bear, $695 for a set of four pendants in gold
or sterling silver.

FUNERALS ARE BIG BUSINESS

The U.S. funeral industry is big business. Each year, American consumers
purchase 2 million funerals costing billions of dollars, according to a 1999
General Accounting Office report to Congress. That number is expected to grow
at a rate of 1 million additional deaths each year once the baby boom
generation starts reaches its peak mortality period.

Industry publications list 27,000 funeral service providers in the United
States with annual revenues of around $10 billion. The average adult funeral
costs around $5,500, excluding burial arrangements, which can add another
$2,500.

The cremation rate has been creeping up steadily, although it still lags far
behind some European countries where cremation has overtaken burial. A 1999
survey for the industry found U.S. cremations were about 30 percent of all
funerals.

U.S. rituals and customs surrounding death have long been a rich source of
satire. The classic of the genre is Evelyn Waugh's ghoulish 1948 novel, "The
Loved One," a black comedy that skewers the world of a California "memorial
park."

In 1963, Jessica Mitford published "The American Way of Death," which savagely
attacked the financial excesses and what she saw as the horribly bad taste of
U.S. funerals, especially the quintessentially American practice of embalming
and publicly viewing the body of the deceased.

That book helped pave the way for tight industry regulation by the Federal
Trade Commission, which now requires funeral providers to give consumers
accurate, itemized, up-front information about their services.

And in fact there are relatively few complaints filed to the various watchdog
organizations about the funeral industry, although this may be partly due to
the reluctance of some consumers to dwell on an unpleasant experience.

An industry-commissioned public opinion poll last year found the "ritualization
and memorialization" industry enjoyed a five-to-one favorability rating,
according to Bob Fells of the International Cemetery and Funeral Association.

Mitford updated her book shortly before her own death in 1996, while still
attacking financial gouging in the industry. She would probably be even more
appalled by some of today's innovations as, inevitably, baby boomers who
reshaped so much of American life come to grips with death American-style.

'DENIM, LINEN AND WARM FUZZY' COFFINS

"If my father sold caskets on protection and permanence, I offer choices,
options, New Age alternatives," wrote Thomas Lynch, a prize-winning essayist
and poet who runs his family's funeral business in Michigan.

"We do combustibles, ecofriendly, video, virtual, cyber obsequies. ... He sold
velvet and satin and crepe interiors. We sell denim and linen and warm
fuzzies," Lynch said.

Most U.S. funeral homes are still family owned. A major push by corporations,
led by Texas-based Service Corp. International, the world's largest funeral
services company, to expand aggressively in the 1990s lost steam after it
became apparent they had grown too indiscriminately and acquired too much debt.

Last month, Service Corp said it would divest 228 North American funeral homes
and announced it expected a fourth quarter pretax loss of $425 to $475 million.
Its shares have fallen from around $38 in early 1999 to under $4 today.

Despite the fact that everybody at some time will require some type of
disposition of their earthly remains, selling funerals remains a cut-throat
industry. Pennsylvania has 1,800 funeral homes chasing 110,000 annual deaths.
That works out to only 61 deaths per funeral home.

While some Americans look for the cheapest solution -- so-called "direct
disposition" straight from the hospital to the crematory with no rituals
in-between -- a big majority of U.S. mourners still prefer the time-honored
tradition of an open casket and public viewing to bid farewell to their loved
ones.

That in turn requires a range of services, notably cosmetic treatment by the
funeral home to ensure that the deceased is looking his or her best.

"We try to bring them back to a more natural look. Often the last view people
have of their loved one is in a hospital and they often look terrible, with
tubes sticking out of them. That's not a memory they want to continue on with,"
said funeral director John Katora at Heffners.

"You get people coming up after the viewing and joking, 'I wish you could make
me look that good,'" he said.

Heffner says the industry's biggest challenge is figuring out what consumers
will be ready to spend on five or 10 years from now. He sees the funeral
industry branching out into catering and even house cleaning.

"You're going to see a range of casual-to-formal options. Food will be
incorporated into services. It's already becoming more informal. We see
pallbearers showing up wearing jeans and guests arriving in cutoffs and
sandals," he said.

"We may be privately outraged but we dare not stand at the door and cringe. The
rule is, anything goes." <<A HREF="aol://4785:SRV">SRV.N</A>>

Peruvian Drug Kingpin Says Spy Agents Drilled Hole in His Head

Lima, Feb. 8 (Bloomberg) -- While being interrogated by Peruvian intelligence
agents in 1994, jailed drug trafficker Demetrio Chavez was grabbed by the neck
and jolted with an electrical current until he passed out.

What he claims happened to him while he was unconscious reveals the darker,
even perverse, side of the scandal of abuse and corruption associated with
Peru's former spymaster, Vladimiro Montesinos.

``I woke up in a dark cell and my head hurt,'' he told a congressional
committee recently. ``After a few days, I washed my head and felt a lethal pain
in the center. I felt it and matter came out and it smelled terrible.

``It finally healed, and now I have a hole in my head,'' he said.

The tale of torture at the hands of Peru's feared intelligence service is among
the more than 150,000 pages of testimony, bank records and other information
compiled by a Congress panel probing fugitive spy chief Montesinos. Committee
members, who confirmed the hole in Chavez' head with their own fingers,
speculate that agents were trying to erase the former drug traffickers memory
of alleged collaboration with Montesinos and the armed forces in the early
1990s.

The three-month-old congressional and judicial investigations of Montesinos,
which span 11 foreign countries, more than 200 suspects and up to $1 billion in
illicit funds, is easily the largest corruption probe in Peruvian history.

Drug Payoffs

Chavez, known by his alias ``Vaticano,'' claims he paid Montesinos $50,000 a
month to allow him to fly planes carrying coca paste from Peru's northeastern
jungle to processing labs in Colombia, where it was turned into cocaine. Their
collaboration collapsed in July 1992 when Montesinos demanded $100,000 a month.

Chavez said that when he refused to pay the higher amount, Montesinos
threatened him and hung up the phone, according to a transcript of his
testimony.

Montesinos had also boasted of working with the late Colombian drug baron Pablo
Escobar, apparently confirming a similar claim by Escobar's jailed brother
Roberto, Chavez said. Montesinos also bragged during a visit to Chavez'
airfield in Campanilla in the northeastern jungle that he would ``govern'' Peru
for two decades, he said.

``He told me, `You know what? I'm going to govern 20 years.' He pounded his
chest and everything,'' Chavez said. He also claimed the former spymaster,
drunk on expensive champagne, made homosexual advances on him, according to the
transcript.

Montesinos, 55, was for more than 10 years the top aide to former President
Alberto Fujimori, whose authoritarian regime collapsed in late November when he
fled to Japan and was deposed in the wake of spiraling scandals involving his
spymaster.

Spymaster on Lam

Montesinos, who fled Peru in a sailboat in late October, is accused of crimes
from bribery, extortion and money laundering to drug and arms trafficking,
torture and murder, including Peru's most notorious human rights crimes of the
1990s. He's accused of weaving a corruption network at the highest levels of
government, the military and the courts, and a series of videotaped revelations
have shaken Peru's political establishment.

So far, 21 people from former ministers to Montesinos' relatives have been
jailed, 13 others are under house arrest and 19 are fugitives from justice.

Panel Chairman David Waisman said Congress' probe may last until July, when the
legislature is replaced, and encompass hundreds of witnesses more.

Beatings and Drugged

Chavez, who was sentenced to life by a secret military court on drug and
treason charges, will get a new civilian trial.

After his arrest in Cali, Colombia, in 1994 and his extradition to Peru and
conviction, Chavez was beaten and drugged by intelligence agents and kept in an
isolation cell at a naval prison, he said. One day the agents placed a helmet
on his head and rained blows on him until he passed out, breaking his
collarbone in the beating.

Another time, he said, they drugged him and then operated on his back.

He lifted his shirt before local television reporters, showing an indentation
in his upper back where he said he was operated, though he doesn't know why.

Brazil barflies sidle up to cyberpub

RIO DE JANEIRO, Brazil, Feb 8 (Reuters) - Ever have a hankering for happy hour
banter before the lunch bell has rung? Or feel the need while stuck at the
office to pour out your heart at the corner saloon?

Starting this week, barflies across Brazil will be able to -- virtually -- at
the country's first cyberpub.

Seven bar buddies this week launched Bar do Ze (http:/www.bardoze.com.br), a
virtual lounge that barflies can sidle up to while still in the office or at
home with the kids.

"It's for people like me who need a little escape, some place to talk about
girls and soccer and politics that's more like their corner bar and less like
the cold Internet," said Erik Galarde, 27, one of the site's co-founders.

On the site, which targets middle class male cybersurfers from 20 to 45 years
old, bar aficionados can rank the top five pubs and the top five draft beers in
their city,???create an ideal lineup for the next World Cup soccer tournament.

Lovestruck visitors can click on "skirts" and take a test to see if their "girl
is the path to happiness or a road to ruin." They can also get tips on the "art
of conquest."

The $200,000 site, however, is only open from 10 a.m. to 4 a.m. (7 a.m. to 1
a.m. EST/1200 to 0600 GMT) since no bonafide barfly would be caught on the
computer any earlier.

[J2jurado]

Heavitree Full Year Profit Falls 17% as Vacant Pubs Dent Income

Exeter, England, Feb. 9 (Bloomberg)-- Heavitree Brewery Plc, which operates
more than 100 pubs in southwest England, said full- year profit fell 17 percent
after vacant pubs dented income from its leaseholders.

Net income in the year ended Oct. 31 fell to 1.2 million pounds ($1.7 million),
or 20.4 pence a share, from 1.4 million, or 24.2p, a year earlier. Sales were
little changed at 9.9 million pounds.

Heavitree leases 103 of its 114 pubs to tenants, who manage them independently.
The company said in January profit fell because it had trouble finding tenants
to occupy as many as 16 premises that needed subsidizing and summer sales fell.

Its shares were unchanged at 292.5 pence, after falling 8.6 percent on Jan. 5
when the company said full year pretax profit would be lower than last year.
The stock lost 19 percent in the last 12 months.

The results include a 251,000 pound profit from the sale of unspecified assets.
Heavitree set its total dividend at 8.75p.

Heineken Plans to Cut Jobs in Spain to Lift Profitability

Amsterdam, Feb. 9 (Bloomberg) -- Heineken NV, Europe's biggest brewer, said
it's planning job cuts to lower costs in Spain, where it became market leader
after last year's purchase of Grupo Cruzcampo SA. Details weren't provided.

``We are in talks with unions to cut the number of employees,'' said Albert
Holtzappel, a company spokesman. ``We will not have any forced lay-offs.''

Spanish daily Expansion reported yesterday the Dutch company plans to cut as
many as 2000 jobs, or 40 percent of the local workforce, and intends to spend
150 million euros for reorganizing the Spanish brewing operations.

``The 2000 number is out of the blue,'' Holtzappel said. He declined to comment
on investment costs, though confirmed Heineken is planning to modernize its
Spanish operations.

Heineken became Spain's biggest brewer after completing the takeover of
Cruzcampo last year in a transaction valuing the company at about $800 million.
In order to win approval for the takeover, the company must sell 17 percent of
its Spanish production and storage facilities.

While Heineken produces only 25 percent more than its nearest competitor Mahou
SA, the Amsterdam-based company employs 60 percent more employees per 100,000
hectoliter of beer produced. That ratio needs to fall, Holtzappel said.

Whitbread Planning to Announce Sale of UK Pubs Next Month

London, Feb. 9 (Bloomberg) -- Whitbread Plc, the U.K. operator of Marriott
hotels and Pizza Hut restaurants, said it expects to sell its pubs early next
month. The unit may fetch as much as 1.5 billion pounds ($2.2 billion),
analysts said.

``We're absolutely bang on schedule,'' said Stewart Miller, managing director
of the pubs division. ``We're pleased with how the sale is progressing. There's
been a lot of interest in the business as a whole.'' He wouldn't discuss the
price.

Britain's biggest owner of health clubs and budget hotels is focusing on the
faster-growing leisure industry as beer drinking declines, in line with the
strategy of Bass Plc, a U.K. rival. Whitbread announced its plan to sell the
3,000 pubs in October.

Nomura Securities Co., Japan's largest investment bank, and Candover
Investments Plc, a private U.K. investment company, are the front-runners,
analysts said. Candover spokesman Charlie Green and Nomura's Andrew Dowler
declined to comment.

Miller, an executive member of Whitbread's board, said he favors a financial
buyer with the power to take over the entire business, which has annual sales
of 1 billion pounds. He and his team will form part of the package, which
includes almost 20,000 employees, including headquarters staff in Dunstable,
near London.

``It's a substantial business,'' Miller said in an interview. ``If somebody
buys the business and is just going to bolt it onto their brands or way of
doing things, that's a completely different position compared to a finance
buyer. A finance buyer knows how to run the financial world. Not everyone has
that competency.''

Nomura, the U.K.'s largest pub operator, and Candover, which has yet to acquire
a pub business, are the only parties interested in making an offer for the bulk
of the business, analysts said.

`Clearly Very Interested'

``Nomura is clearly very interested,'' said Nigel Popham, an analyst at Teather
& Greenwood Ltd. with a ``hold'' on Whitbread. ``Very few pubs will be bought
by quoted companies as they are struggling to make adequate returns from the
declining industry.''

He said he expects the sale to be split between at least three buyers.

U.K. Beer consumption at pubs and bars has declined 6 percent over the past
five years, according to research by Mintel International Group Ltd., as
drinkers choose wine and spirits instead. There's also been a trend toward
drinking beer at home, with consumption surging 46 percent in the period.

Whitbread's 1,730 leased outlets are the easiest to sell to a financial buyer
as they have stable long-term rental income that can be used for debt
financing, analysts said. Miller said many of Whitbread's 1,058 managed pubs
could be converted into leased outlets. The company also owns 190 branded pubs
in city centers, 150 of which are Hogshead outlets.

`It's Financial Buyers'

``It's financial buyers who are interested,'' said Stuart Price, an analyst at
Credit Suisse First Boston with a ``hold'' rating on the stock. He said J.D.
Wetherspoon Plc, a pub company known for its cut-price drinks, has expressed
interest in the Hogshead chain.

Analysts expect a number of joint bids aimed at carving up the tenanted and
managed estates. Those parties may include Alchemy Partners, a venture-capital
company; Legal & General Ventures, the venture-capital arm of the insurer Legal
& General Group Plc; and Pubmaster Group Ltd., owned by Germany's Westdeutsche
Landesbank Girozentrale.

``We are looking to expand aggressively but can't comment on individual
deals,'' said Lynda Hartnett, a spokeswoman for Pubmaster. Alchemy didn't
return calls and Legal & General said no one was available to comment.

Some 10 percent to 13 percent of Britain's 60,000 pubs are on the market as the
industry shakes out. Bass is selling about 900 bars to expand its hotel chains
while Scottish & Newcastle Plc, the largest U.K. brewer, is seeking buyers for
740 of its 2,373 managed pubs. Wolverhampton & Dudley Breweries Plc has said it
may sell all of its 1,780 bars.

Punch

Punch Taverns Group Ltd., which last year beat Whitbread in the race to buy
Allied Domecq Plc's bars, is the No. 2 U.K. pubs company. Nomura and Punch have
almost 10,000 pubs between them.

``I don't think the fact that there's lots of pubs on the market at the moment
is fundamentally changing things,'' Miller said. ``What we're offering for sale
is different to what Bass or Scottish & Newcastle are going to be offering for
sale.''

Whitbread will hand back 75 percent of the proceeds from the sale to
shareholders. The company, which last year sold its brewing unit for 400
million pounds and the First Quench chain of liquor stores for 125 million
pounds, will spend the rest on acquisitions and building its hotels and
restaurants, Miller said.

The company aims to strengthen the hotel business through organic growth and
alliances after splashing out 578 million pounds last year for Swallow Group
Plc to double the number of Marriott hotels it manages in the U.K.

Whitbread's shares have risen 36 percent in the past 12 months. The stock is
the fourth-best performer on the 17-member FT- SE 350 Leisure, Entertainment &
Hotels Index, behind Greene King Plc, Millennium & Copthorne Plc and Hilton
Group Plc.

San Miguel 2000 Profit May Have Risen 13%; More Growth Coming

Manila, Feb. 9 (Bloomberg) -- San Miguel Corp., the Philippines' largest food
and beverage producer, will probably say its profit rose 13 percent in 2000 and
is set to keep rising following an acquisition last week, analysts said.

Net income for San Miguel, which sells nine out of every 10 bottles of beer
drunk in the Philippines, rose to 6.8 billion pesos ($141 million), according
to a forecast by 22 analysts by IBES International Inc. It earned 6 billion
pesos in 1999.

San Miguel will release its results Monday morning, said company spokesman
Ramon Santiagio. Its profit was 5 billion pesos in the first nine months of the
year.

The company's earnings may rise further -- in 2002, if not this year -- due to
its repurchase of a 65 percent stake in Coca- Cola Bottlers Philippines Inc.,
which was San Miguel's biggest source of income before it sold the business in
1997.

``Next year is when it should start to pay off,'' Andrew Long, head of research
at Vickers Ballas Securities Philippines Inc., who expects San Miguel to earn
7.3 billion pesos in 2001 ``We're expecting it to provide longer-term earnings
growth,'' after San Miguel pays acquisition-related costs.

In 2000, San Miguel's profit improved because of improved beer sales abroad,
better earnings at its packaging business, and higher interest income from its
$1 billion in cash, analysts said.

The company, which brews in Hong Kong, China and Indonesia, expanded its
business during the year through the purchase of Australian brewer J. Boag &
Son Ltd. and a Philippine juicemaker.

Selling beer abroad has ``been a very good move,'' said Long, head which has a
``long-term buy'' on San Miguel shares. ``The cash horde also helped.''

Slump

San Miguel unit La Tondena Distillers Inc., the Philippines' biggest liquor
maker, contributes about 20 percent of earnings. La Tondena last week said its
profit was 1.35 billion pesos in 2000, 34 percent more than a year earlier.

San Miguel Brewery Hong Kong Ltd., which San Miguel and other brands, today
said its 2000 profit was HK$87.7 million ($11.2 million), 46 percent more than
in 1999.

San Miguel Corp. probably had a fourth quarter profit of 1.8 billion pesos
compared with 2 billion pesos in the same period in 1999, reflecting a drop in
economic growth to 3.6 percent on year in the fourth quarter from 4.6 percent
in the third quarter.

The slowdown may have prompted lower income consumers such as farmers and
fishermen to switch to cheaper alcoholic drinks from beer, which accounts for
about a third of sales, analysts said.

``Domestic beer wasn't necessarily exciting last year,'' Vickers' Long said.
``Instead of five bottles of beer they'll go for a cheap bottle of rum.''

Lion Increases Montana Stake to 46.5% for NZ$177 Mln

Sydney, Feb. 9 (Bloomberg)-- Lion Nathan Ltd., Australia's second-biggest
brewer, said it bought a further 18.2 percent of Montana Group N.Z. Ltd. for
NZ$177 million ($95 million), moving closer to a takeover of New Zealand's
largest winemaker.

Lion, which yesterday topped a bid by Allied Domecq Plc with an offer that
values Montana at NZ$1 billion, lifted its holding to 46.5 percent from 28.3
percent through the purchase of 38 million shares in Montana at NZ$4.65 a
share. Lion plans to buy another 4.5 percent Monday to boost its stake to 50.1
percent.

The Sydney-based company, 46 percent-owned by Kirin Brewery Co., Japan's
largest beermaker, is angling for control of a winemaker with 60 percent of the
market in New Zealand, known for Sauvignon Blanc.

``The game's over,'' said Brett Harwood, an analyst at Australian Equities
Research. ``Lion Nathan won't be selling out no matter what another bidder will
put on the table.''

Shares in Allied fell as much as 17.25 pence, or 4 percent, to 415.25p in
London, while Lion Nathan declined 2 percent to NZ$4.80. Trading in Montana
shares was suspended today by the New Zealand Stock Exchange at the request of
Montana's independent directors, though analysts said it will probably be hard
to prevent Lion taking control of the company.

Montana last traded at NZ$4.67 yesterday, a 16 percent gain, after earlier
surging to an 11-year high of NZ$4.75.

Allied Bid Still on Table

Jane Mussared, a spokeswoman for Bristol, England-based Allied, said the bid is
still on the table and the company is reviewing the situation.

Although analysts said Allied may come back with another bid, ``I presume the

deal is effective,'' said Stephen Walker, who holds Montana among the NZ$1.6
billion ($700 million) of equities he manages for AMP Henderson Global
Investors New Zealand Ltd. AMP agreed to sell its Montana stock to Lion.

If Lion succeeds, it gains control of a company whose stock was the
best-performing in the nation's Top 40 stock index last year, returning 89
percent while the index lost 14 percent.

Montana increased its share of New Zealand's wine market to 65 percent last
year from about 40 percent by buying the Corbans Wines Ltd. business of the
nation's No. 2 brewer DB Group Ltd. At the same time it sold non-wine
businesses such as a trucking company to sharpen its focus. Its return on
equity last fiscal year was 18.6 percent.

Earlier this week, Allied, the world's second-largest liquor company, offered

to buy the entire company for NZ$4.40 a share. Lion said it would pay as much
as NZ$4.80 a share for an extra 22 percent. Montana endorsed Allied's bid,
saying Lion's offer was unfair to minority investors because they couldn't all
offload their stock at the higher price.

Yesterday, Lion gained a waiver from the New Zealand Stock Exchange allowing it
to begin buying shares on market at NZ$4.65 a share today rather than Monday as
required under listing rules. The rules require a delay to allow investors to
assess their position and for any counter-bids to be prepared.

Lion is taking advantage of takeover regulations in New Zealand that allow an

investor to gain control of a company by making a partial takeover bid in which
most shareholders will be unable to participate.

``We got as much as we can from institutions and we now have to wait for the
market to open so we can execute the second part of it,'' said Lion spokesman
Warwick Bryan. ``We need to get to a 50.1 percent before we can make any
decisions about where we go next.''

Lion has retained Credit Suisse First Boston NZ Holdings Ltd. to buy the 4.5
percent of Montana it is still seeking Monday.

Industry Consolidation

Bristol, England-based Allied, which recently purchased the Mumm and
Perrier-Jouet champagne makers, has been seeking smaller acquisitions after
dropping out of the bidding for Vivendi Universal SA's Seagram drinks unit.

AER's Harwood said the battle for control of Montana highlights the
consolidation of the global wine industry. He added that Allied may shift its
acquisition focus to Australian winemakers, including BRL Hardy Ltd. and
Southcorp Ltd., if its Montana bid fails.

``Maybe there is consolidation that's going to happen,'' he said. ``It really
places the spotlight on BRL and probably more to the point Southcorp.''

Lion is being advised by Credit Suisse First Boston and Montana is being
advised by J.B. Were & Son, while Goldman Sachs Australia LLC is advising
Allied.

Brazilian Love of the Beach Creates Flip-Flop Legend

Sao Paulo, Feb. 9 (Bloomberg) -- Brazilian sun worshipper Roberto de Souza
faces a tough choice when he hits the beach most weekends: Which of his 70
pairs of ``Havaianas'' flip-flops should he wear?

The 40-year-old television sales executive from Sao Paulo often can't decide
and packs at least five pairs before heading off to indulge in his favorite
pastime.

``What I like to do most at the beach is put on my Havaianas and drink some
beer,'' said De Souza. ``It's my idea of happiness.''

De Souza is hardly alone in his devotion to Havaianas. Brazil's top-selling
brand of flip-flop is worn by an estimated two in three of the 170 million
inhabitants of Latin America's biggest country. Wearers range from President
Fernando Henrique Cardoso, who wears white flip-flops on his beach holidays, to
fashion model Naomi Campbell.

With such a large market penetration, the challenge for Sao Paulo Alpargatas
SA, which makes the Havaiana brand sandals, is to introduce new and more
expensive models to help maintain unit sales and revenue growth. This year, a
growing economy will also help, enabling the company to increase sales at least
5 percent to about 110 million pairs, said Rui Porto, the company's media and
communications director.

The prospect of higher sales is one reason Alpargatas's preferred shares have
risen 27 percent this year, more than double the 13 percent gain in the
benchmark Sao Paulo stock index. Alpargatas is beyond the reach of many big
institutional fund managers, trading an average of just 5,257 shares a day over
the past three months.

Also behind the rise are expectations profit margins will widen, the fruit of a
reorganization at the shoe and canvas manufacturer, said Wolney Netto, an
analyst at Fator Doria Atherino in Sao Paulo, who rates Alpargatas ``Buy.''

In recent years, Alpargatas has closed unprofitable plants and created new
lines of business, such as its 1995 contract with Timberland Co. to make
outdoor clothing.

Main Business

Even so, flip-flops selling for a little as $1.50 are still Alpargatas' main
business, accounting for as much as half of revenue, according to Dynamo Asset
Management, a Rio de Janeiro- based investment firm that owns 38 percent of the
company's non- voting or preferred shares.

Alpargatas wouldn't disclose how much Havaiana sales make up of revenue, which
in the first three quarters of 2000 reached 419 million reais, 21 percent more
than in the same 1999 period. Havaianas means ``Hawaiians'' in Portuguese.

Founded in 1907 by a Scottish entrepreneur Robert Fraser, Alpargatas now seems
to be ``in the right place at the right time,'' as Brazil shakes off the impact
of a 1999 currency devaluation, said Netto. Economists expect Latin America's
biggest economy to expand by between 4 percent and 5 percent this year.

The success of Brazilian athletes, such as tennis star Gustavo Kuerten, who was
the world's No. 1 ranked player last year, also is boosting sales of sports
shoes, said Netto. Alpargatas claims to have 85 percent of the market for
rubber- soled flip-flops, competing with manufacturers such as Brazil's
Grendene Group, which sell sandals made of other synthetic materials.

Good Start

Alpargatas was a winner with its first flip-flop in 1962, taking advantage of
strong demand in a country filled with sun worshippers.

``Brazil is a warm, poor country with thousands of kilometers of coastline,''
said Porto, adding he has ``maybe 30'' pairs of Havaianas of his own at home.
``It's a good place to make flip- flops.''

For 32 years the product was unchanged -- a white rubber sole with straps that
came in a choice of four colors. The austere style fitted the mood of a country
ruled by a military regime from 1964 to 1985, said Constanza Pascolato, a Sao
Paulo-based fashion expert and author of a best-selling book on Brazilian
style.

In 1994, Alpargatas decided to shed the Havaianas image of footwear for the
poor and introduced its thicker-soled ``Top'' range that is available in 13
colors, enabling owners to match their flip-flops with the bold tones of their
bikinis or surf gear.

Trade Up

The company's factory in the northeastern state of Paraiba has made more than 2
billion pairs since 1962 and turns out 300 pairs a minute in peak season.

Bearing in mind that unit sales in Brazil are already so huge the challenge is
to encourage Brazilians to ``trade up'' from traditional Havaianas to the
higher-margin versions, said Porto in an interview.

A pair of basic Havaianas can cost as little as 3 reais ($1.52) while the
top-of-the-range thick-soled fashion model, with a crystal embedded in the
strap, goes for as much as 20 reais.

Alpargatas can already claim success in making its flagship product a fashion
accessory. Queen Silvia of Sweden sported a white pair of Havaianas during a
visit to the country in 1998 and supermodels Kate Moss and Naomi Campbell have
purchased dozens of pairs, says Alpargatas' official history of the brand
published last year.

Backed by the seal of approval of such fashion icons, Alpargatas plans to boost
export sales to 15 percent of revenue by 2004 from 2 percent now, said Porto.

A pair of flip-flops can fetch as much as 30,000 lire ($14.35) in Milan fashion
boutiques, said Alessandra Pivato, Alpargatas' agent in Italy.

``The Havaianas design is so perfect, it's unbeatable,'' said fashion doyen
Pascolato, who recommends female owners wear them with tops in simple cotton
fabrics, light shorts or a sarong. ``They're simple and sensuous -- so
Brazilian!''

[J2jurado]

http://news.com.au:80/common/story_page/0,4057,1697972%255E421,00.html

Price of a beer to drop by 25c

By MATTHEW HORAN 11feb01

THE price of a middy of beer is expected to fall by as much as 25c in July.

Brewers are planning immediate price cuts to take advantage of an anticipated
cut in beer excise.

Drinkers have been paying a doubled excise rate, plus the GST, since July,
pushing the price of a middy up by
nine per cent.

But the excise increase is certain to be defeated in the Senate -- meaning the
price will drop to pre-GST levels come July. The big brewing companies are
preparing a marketing campaign to let drinkers know all the cost savings --
seven to 10 per cent -- will be passed on to them.

And almost $200 million in excise already been collected by the Government will
be returned to the community by the breweries through a charitable trust.

The price of a middy should drop from $2.30 to its pre-GST level of $2.10 and
the price of a schooner from $3.35 to $3.10, depending on the price charged by
individual hotels.

The price of a schooner of premium tap beer, such as Hahn Premium, should fall
from $3.65 to $3.40, according to Australian Hotels Association calculations.

Packaged beer -- such as stubbies and cans -- will not be affected.

Australian Associated Brewers spokesman Gabriel McDowell said the association,
which represents Lion Nathan, CUB, Coopers and Boags, was telling pubs and
clubs to be ready to cut prices.

"We are very confident this legislation won't pass, and we will pass on all the
savings to the drinker,' Mr McDowell said.

"It will mean a minimum saving of seven per cent, and in some cases nine or 10
per cent."

Mr McDowall said the breweries were keen to recapture sales lost since the
introduction of the GST and the excise increase.

Beer sales have dropped at least four per cent since July last year.

Earlier this month, the Government upped the excise on beer again -- by about
5c on a 285ml middy -- because of the GST.

But even though the Government has been collecting the money since July last
year, it must retrospectively ratify the excise rise by midnight on June 20 to
make it legal.

http://www.adn.com:80/weekend/story/0,2645,237776,00.html

The Snow Goose's beer bear takes a hike

What ales you, By Dawnell Smith (Published Feb 9 2001)

Brewers, beer lovers and other frothy spirits spent a few hours last week
tipping pints in homage to Mike Hartman, arguably Anchorage's most
accomplished brewer. As revelers gulped the savory suds, many realized they
were sipping the last drops of Hartman's sweat and toil.

Starting last week, the stocky man with the big brew boots began pushing paper
for Chugach Electric, not kegs and spent grain for his beloved Sleeping Lady
brewery. For Hartman, the change means going to a career he left behind five
years ago when he took his place at the kettle.

It also means regular hours, lots of holidays and other benefits. He won't get
a beer stipend, but he plans to make do by resurrecting his home brewery and
making his favorite bold beers. Even so, Hartman knows he'll miss seeing
people quaffing his suds on the crowded Snow Goose Restaurant deck. He might
not miss the cleaning, bending and lifting on hard, wet floors, but he'll
certainly long for the camaraderie of gathering with other brewers to
commiserate about stuck mashes, yeast maintenance and other topics.

In many ways, his departure from the Goose lets him return to a hobby he loves
after making it a profession for a while. His home-brewing abilities actually
preceded him before he headed to the Goose.

As a result, everyone expected him to make good beer and, undoubtedly, some
even expected him to make great beer. He raised it a notch by brewing
tremendous beer worthy of medals at the Great American Beer Festival and World
Beer Cup. He's the only Anchorage brewer with national and international
awards.

"There's no doubt in my mind he's the most accomplished brewer in the land --
from recipe development to production," said Gary Klopfer, owner of the Snow
Goose.

The medals Hartman won for Old Gander Barley Wine, Portage Porter and Urban
Wilderness Pale Ale prove his prowess as a brewer and craftsman, but his quiet,
calm demeanor reveal more about him as a person.

As his friend and home-brewing pal Jason Ditsworth said, "He's made some great
beers, and he's always been real humble about his winnings."

Others liken him a teddy bear with a big heart.

"He's always had brewing in his heart," said brewer Shawn Wendling, formerly
of the Glacier BrewHouse. "The brewing community will certainly miss him." As
president of the Great Northern Homebrew Club of Anchorage, Steve Schmitt looks
forward to seeing Hartman more than ever.

"In the years I've worked for the home-brew club, he's been an asset to the
brewing community and club."

Without the restraints of commercial brewing, Hartman can actually put more
energy into making the burly brews he knows and loves. He particularly shines
on big beers that push the style guidelines, noted Dennis Urban, who created
the winning home brew that inspired Urban Wilderness Pale Ale.

Whatever the future holds, Hartman intends to enjoy beer and promote the
craft-beer industry. When asked if he had any last words as a professional
brewer, he didn't skip a beat.

"Please, please, PLEASE drink good craft beer."

Dawnell Smith scrubbed the mash tun with Hartman long ago and now takes her
place at the Goose kettle, where his legacy casts a long shadow. She hopes to
grow into his boots someday.

http://www.ireland.com:80/newspaper/finance/2001/0206/fin1.htm

Beamish to stop making Carling

By Arthur Beesley .February 6, 2001

Beamish & Crawford will transfer its licence to brew Carling lager to Bass
Brewers in May 2003.

The Cork firm yesterday said it would continue to brew Carling until April
2005, when Bass would decide on the future of the product. Beamish's managing
director, Mr Alf Smiddy, said the move would not lead directly to job losses.

But he added that global consolidation in the beer business meant cutbackswere
inevitable. For example, 12 staff would lose their jobs this year because
Beamish planned to use a national distribution centre. The Carling brand
conflicted with the Beamish range of lagers which included Foster's and Millar
Genuine Draught, he added.

"In terms of Carling as a brand, in many respects it's probably the oldest
swinger in town."

While Millar was a "premium craft product", Carling was sold in off licences as
a less expensive product.

When asked whether the transfer would affect Beamish's revenues and profits, Mr
Smiddy said: "Clearly we have revenues but we also have a lot of costs in terms
of marketing, sales and promotion."

Because Beamish's competitor Bass brewed Carling in Britain, Mr Smiddy said
it was difficult to co-ordinate promotion of the brand.

Tennants Ireland, owned by Bass Brewers, said the brand would be soldthroughout
the island by the company.

Its managing director, Mr Liam Meaney, confirmed it would assess the brand in
2005.

Carling was "very strong" nationally when sold in cans, he said. The bottled
product was strong in the south-east particularly in Waterford and draught beer
was strong throughout Munster.

"I think we would expect volumes to be maintained at a minimum," he added.
Bass would "work closely" with Beamish to ensure its success.

http://dailynews.philly.com:80/content/daily_news/2001/02/09/features/FJOE
09.htm

Joe Sixpack - Here's how to drink with good taste - Feb. 9, 2001

Lately, my mailbox has been overflowing with perplexing questions about proper
beer-drinking conduct.

Personally, Joe Sixpack has only two rules:
1. Never put your head on the bar.
2. Do not attempt to dance.

But these are complicated days, and many Daily News readers are hopelessly
confused. As a public service, I
offer these solutions to your completely fabricated beer etiquette questions.

Yo, Joe: When my buds and I go bar-hopping, we usually take turns buying
rounds. The problem is, I'm drinking Yuengling Lager while these guys are
sucking down Belgian ales that cost twice as much as Pottsville's best. I feel
like I'm subsidizing their expensive taste. Should I complain?

- Barley Whiner

Dear Whiner: The way I see it, you've got exactly two options here:
A. Get new friends, you cheapskate. The ones you've got will be glad to see you
go. They're probably
embarrassed to be seen with you, the way you gripe about shelling out a couple
extra bucks for a Chimay.
Maybe you think you'd be better off just drinking alone, but then you'd be
sitting miserably at the end of the bar,
striking out every time you try to pick up that cute waitress. Then she'll file
a protection order against you, and
you'll get even more depressed and wind up sleeping in a Dumpster.

B. Drink better beer. See, isn't that a whole lot easier?

Yo, Joe: I just bought a case of Sierra Nevada Bigfoot Ale with a bottle cap
that was marked "2000." I thought
that meant it was brewed last year, to be sold this winter. But when I got it
home, I discovered it was actually
brewed in 1999, and it had been sitting at the distributor for a whole year. I
think I was duped. Do I deserve a
refund?

- Unhoppy

Yo, Unhoppy: Beer dates are a confusing mess. Sometimes it means the date the
contents were brewed; other times it's an expiration date. For the record, the
year on Bigfoot bottle caps refers to its release date, which is in January of
each year. The current crop is marked "2001." Like most barleywines, Bigfoot
can easily last a year or more without going stale. (I've kept it up to three
years with no serious problems, though it tends to go flat.) Your beer is
probably drinkable, as long as the distributor kept it out of the sun.

But your gripe is legit, especially if the distributor was selling the beer as
this season's vintage. You expected a
fresher beer, maybe with more hop character than that of a year-old vintage.

If you're unhappy, the distributor should buy back that case. Only a
disreputable businessman will turn you
away. If he does, tell the shyster you're taking your business somewhere else.

(Sixpack note: "Unhoppy" now informs me that Sierra Nevada reps have responded
to his plight. And his distributor, Kunda Bros. of King of Prussia, has offered
an unconditional money-back guarantee.

("If only tire companies, DSL service providers and car companies were so
cordial and dedicated to customer service," says Unhoppy.)

Yo, Joe: I'm hosting a party. Should I hide the good stuff or share it with my
friends?

- Abbie Double

Yo, Abbie: Your friends are obviously undeserving losers, and so are you for
asking such a stupid question. So hide the beer. Better yet, send it to me at
the address below. Look, the time to pull out the good stuff is at parties.
It's your best chance to compare notes, and maybe upgrade your friends' tastes.

That can be a tough one to swallow when some Busch-leaguer cracks open your
last bottle of 5-year-old Thomas Hardy's Ale. Let your friend have a taste; if
he gags, hand him a bottle of Saranac and pour the good stuff into a fresh
glass for yourself.

Yo, Joe: How much should I tip the bartender?

- Bud Wiser

Yo, Bud: A minimum of a buck a round, even if it's just a single pint of ale.
Bartenders hate loose change. It may not seem fair that you're obliged to tip,
but remember: Your bartender controls your destiny. You can
either sit all night with an empty glass, or enjoy prompt service.

And don't forget to tip when you get a complimentary round. Otherwise, why
would your bartender bother to give
you another freebie?

Yo, Joe: What if you bring a great sixpack to a party, and nobody touches it.
Do you get to take it back home?

- Fatima Yechbergh

Yo, Fatima: I wonder why your sixpack went untouched. Is it possible you were
mooching off your host's stash
of Thomas Hardy's?

Whatever. Leave the suds.

They're a gift.

Beer Radar

Temple University's Liacouras Center and its concessionaire, Aramark, deserve a
technical foul for
unsportsmanlike beer vending. For the past couple weeks, the arena has been
selling off old, old bottles of
Poor Henry's Awesome Ale.

How do I know they're old?

Because Poor Henry's filed for bankruptcy last summer and the brewery has been
padlocked ever since. That
means the suds Aramark has been pawning off on its unsuspecting customers for
four bucks a pop is at least
8 to 10 months old. Unlike strong ales, this beer was intended to be consumed
within two or three months of
bottling. But if these bottles had a born-on date, they'd be old enough to file
for Social Security benefits.

I called Aramark to complain, but I wasn't expecting much. These are the same
guys responsible for the
suspect ballpark grub at the Vet. Nonetheless, when I informed concession boss
Ron Drake that beer is, in fact, a perishable product, he promised to pull
the stale ale from the shelves. . .

Meanwhile, Owls fans thirsty for a decent brew on arid North Broad Street may
be finally getting some relief.
Temple officials say the long-awaited Draught Horse 300-seat saloon next door
to the arena should be open
by the end of the month. . .

Back to Henry Ortlieb, word on the street is that he might be hooking up with
Independence Brewing honchos
in a contract brewing deal. I couldn't locate Ortlieb, but Independence
president Bill Moore confirmed there
have been talks.

Like Poor Henry's, Independence's Northeast Philadelphia brewery has been shut
for almost a year. Most of
the equipment was sold, to breweries in Jamaica, Colorado (Breckenridge) and
California (Anderson Valley),
and Moore said the company is still in debt.

Moore, who brews at Phoenixville's Sly Fox and Pottstown's Sunnybrook brewpubs,
declined to offer any details. But he dropped hints it may involve a contract
deal with Lion Brewing in Wilkes-Barre.

"We still have a ray of hope that we can revive Independence," Moore said. .
.Do not be deceived: Killarney's Red Lager, which just arrived in this area and
claims to be brewed with "the finest Irish malts," is yet another
Anheuser-Busch product. . .

In other megabrewery developments, the St. Louis Post-Dispatch reports A-B will
roll out a new "super-premium" beer. It's supposed to be called Red Label
Budweiser, which makes me wonder about this obsession with beers named "Red."
By my count, that would make 60 different reds registered in Pennsylvania, from
Red Stripe to New Amsterdam Tropical Xtremes Red. . .

Yes, it's true, Nodding Head's Old Willy's Ghost - brewer Brandon Greenwood's
fantastically smooth,head-rocking 9 percent barleywine - is named after William
Reed. He's the onetime head brewer at Sam Adams' Brewhouse that formerly
occupied the brewpub's location at 1516 Sansom St. Reed is now co-owner of
Standard Tap (2nd and Poplar streets, Northern Liberties). . .

New on tap at Ludwig's Garten (1315 Sansom St., Center City): Mad King's Weiss.
The strong wheat beer is made specially for the German tavern by Downingtown's
Victory Brewing. Co-owner Paul Olivier says he'll introduce it next week at a
bargain $2 a pint. Also coming: four more taps, to join the 17 already
overflowing with hard-to-find Bavarians. . .

Ex-Phillies reliever Tug McGraw gets a chance to pitch the yeast on Tuesday at
Iron Hill Brewery & Restaurant (Church and State streets, Media). He'll serve
as guest brewer for a special batch of Bullpen Red Irish Ale. Then the Tugger
will return on March 7 to pour the brew and throw out the first drunk. Proceeds
from the ale sales go to Family and Community Service of Delaware County.

Joe Sixpack, by Staff Writer Don Russell, was written this week with a glass of
Dogfish Head 60 Minute IPA.

http://www.pioneerplanet.com:80/seven-days/wed/news/docs/026508.htm

St. Paul may sue smelly ethanol plant

February 7, 2001 - City attorney studies council's legal options

MURALI BALAJI STAFF WRITER

Facing growing pressure from neighborhood groups bothered by odors from an
ethanol plant, the St. Paul City Council could vote today to pursue legal
action against the embattled West Seventh Street facility. Whether the city
can proceed with a lawsuit against the Gopher State Ethanol Plant depends on a
recommendation today from City Attorney Clayton Robinson.

Robinson has been investigating whether the city can take legal action to
declare the ethanol plant operating within Minnesota Brewing Co. a public
nuisance because of odor and noise problems. If there are legal grounds for a
nuisance claim, the St. Paul City Council appears likely to vote to take the
plant to court.

Robinson has remained tight-lipped about the matter, citing confidentiality
issues. He noted, however, that investigating a legally operating entity like
Gopher State Ethanol as a potential public nuisance was unprecedented in the
city's history.

``We're treading new ground in this matter,'' Robinson said.

A council lawsuit would represent a more aggressive approach by city officials,
who at one time appeared reluctant to intervene in the ethanol plant's odor-
and noise-reduction efforts. But as spring nears and the potential for another
smelly summer increases, the city seems more determined to find a solution,
even if it means possibly closing the plant.

The case would be heard in Ramsey County District Court, though Robinson
indicated it was difficult to determine how long it might take the court to
decide whether Gopher State Ethanol constitutes a public nuisance. City
Council members, however,are eager to move the process along.

City Council Member Chris Coleman, who represents the West Seventh and West
Side neighborhoods, the areas most affected by the plant's odor and noise
emissions, said action needed to be taken as quickly as possible to ensure the
city's and neighborhood's interests were protected.

``I'm waiting to see what our options are, but we've got to do something,''
Coleman said, adding that if Robinson recommends nuisance action, ``we have no
choice but to go down that road.''

Although shutting down the plant would likely be the last option for the city,
a court order stemming from the nuisance action could force the ethanol
company to cease operations until a thermal oxidizer is installed. Plant
officials have identified that as the long-term solution, but Jack Lee,
president and chief executive of Minnesota
Brewing Co. and Gopher State Ethanol, said shutting down the ethanol plant
would have devastating effects on both the ethanol company and the brewery.

``If the plant were forced to shut down, it would throw the brewing company
into bankruptcy,'' Lee said, noting that Minnesota Brewing Co. was both
financially and legally responsible for the ethanol plant. ``You're looking at
putting 220 people out of jobs.''

He added that the plant was ready to install the oxidizer immediately, but that
plant officials are still awaiting the Minnesota Pollution Control Agency's
approval to operate the device, a process that could take up to six months.
Lee said he would speak to MPCA officials on whether the approval could be
expedited in order to get the oxidizer installed and operational by spring.

http://archives.seattletimes.nwsource.com:80/cgi-bin/texis/web/vortex/disp
lay?slug=ferrybooze07m&date=20010207

Dry runs ahead for state ferries? Lawmakers mull onboard booze ban

By David Ammons The Associated Press, February 07, 2001

OLYMPIA - Many frazzled commuters love to sip a glass of wine or unwind with a
frosty brew on a state ferry.

Is it a grace note for regulars and a hospitable way to cater to tourists —
or is it dead wrong for the state to preach against drunken driving yet hawk
booze and send potentially inebriated motorists out onto the highways?

The Legislature is mulling a ban on liquor sales on the 26-boat fleet.

Booze brings in big profits for the state. Through its concessionaire,
Marriott, it takes in more than $200,000 in profit from beer and wine sales
each year, and more from the duty-free liquor shop on international runs
between Anacortes and Vancouver Island.

But state Sen. Paull Shin, D-Mukilteo, sponsor of a bill to ban onboard
alcohol, told a Senate Transportation Committee hearing Monday: "In our state
we try to instruct people not to drink and then use our highways. May I remind
you that the ferries are part of our highway system?

A parade of witnesses, most connected with Mothers Against Drunk Driving,
pleaded with lawmakers to end the liquor sales.

"This is a crime that is preventable," said Victoria Johnston of Kirkland,
whose father was killed by a drunken driver 11 years ago. The ban is opposed by
lobbyists for the beer and wine industry and truck drivers. They said
lawmakers have no firm evidence that onboard sales are leading to drunken
driving or accidents.

Terry McCarthy, acting director of Washington State Ferries, said onboard
servers are trained and monitored by the state Liquor Control Board, and the
operation has never been cited by state agents for overserving, selling to
minors or other infractions.

Profits from beer and wine sales are "a tremendous profit center" and help
subsidize the ferry system as well as keep down the prices of coffee and food,
he said. Without the alcohol profits, the state would have to raise fares,
McCarthy said.

State Patrol Capt. Eric Robertson said troopers make plenty of drunken-driving
and drugged-driving arrests at ferry terminals — 80 just at Seattle's Colman
Dock last year. Nearly all are motorists who arrive "loaded" from sporting
events, bars or restaurants, he said.

http://www.accessatlanta.com:80/partners/ajc/epaper/editions/saturday/loca
l_news_a3488ee612fec04800a2.html

Stronger beer voted down 9 percent limit: Certain imported brews remainillegal
due to problems with minors, DUI. 2001

GEORGIA LEGISLATURERhonda Cook - Staff Saturday, February 10, 2001

Apparently heeding warnings of underage drinking and impaired motorists
behind the wheel, the House on Friday soundly defeated a proposal to permit
the sale of beer with a higher alcohol content. After the House rejected the
proposal 108-60, Rep. David Lucas (D-Macon) said he would ask the House to
reconsider its vote on Monday.
he measure, sponsored by Rep. Stephanie Stuckey (D-Decatur), would have raised
the legal alcohol content in beer to 14 percent, from the current 9 percent
limit. Proponents said the change would permit the sale of a greater variety of
international beer in Georgia.

Stuckey said she was stunned by her bill's sound defeat. "Last year, it (a
similar bill) got 126 votes" in the House, she said.

"Certain members of the House saw this as an opportunity to grandstand,"
Stuckey said, adding that opponents should push for more treatment funding if
they're sincerely concerned about alcohol abuse. The bill was prompted by a
request from a bar owner in Stuckey's district who specializes in imported
beers, she said.

Like laws on the books in 37 other states, including Tennessee and Florida,
Stuckey's proposal would allow the sale of "strong malt beverages" like
Belgian, French, English and Scottish European strong ales, as well as imperial
stout, bock and barley wine beer. They're usually served in larger bottles
than domestic beers and can cost $12-$18 per bottle. Stuckey said the beer
also is heavier than domestics, has a bitter taste and is often served to
enhance a meal, much like wine is.

"It's a specialty niche of the beer market," Stuckey said. "Many of these
beers are brewed by Trappist monks in Europe."

A steady stream of Republicans spoke against the bill and questioned the wisdom
of raising the allowed alcohol level at the same time legislators are
considering expanding the open container law to include all passengers in a
vehicle.

"It doesn't make me feel any better knowing this beer is in a large bottle
with a screw top," said Rep. Kathy Cox (R-Peachtree City).

"A vote for this bill is a vote to enhance the problem of alcohol and the
problem alcohol has caused in this state," she said.

http://archives.seattletimes.nwsource.com:80/cgi-bin/texis/web/vortex/disp
lay?slug=ifgo08&date=20010208

February 08, 2001

Visiting Portland breweries

If you're serious about casual beer-drinking, buy a day ticket for unlimited
bus rides ($4 daily or $10 for three days) and equip yourself with the free
map provided by Tri-Met. Then mark up your map with your intended tour stops.
A map showing locations of breweries around Portland is on the Oregon Brewers
Guild Web site: www.teleport.com/~beer.

You can buy bus tickets from the Tri-Met office in Pioneer Courthouse
Square,Monday through Friday or in advance by mail. Tri-Met's customer service
desk at Pioneer Courthouse Square (701 S.W. Sixth Ave. in downtown Portland) is
not open on weekends but if you call at least a week in advance, a map and
information will be sent to you free. Phone: 503-238-7433. Web:
www.tri-met.org.

Portland is relatively compact, and most breweries are located west of
theWillamette River, or close to downtown. Tri-Met's map shows all the bus
routes and times. Tri-Met services are free in the area bounded by the west
side of the Willamette River and Interstate 405 up to Union Station. Portland's
light-rail service, MAX, is of limited use for visiting most breweries in
Portland. Tri-Met buses and light rail operate until about 1 a.m.

If you want to venture further afield, there is also a concentration of
breweries south of the city in the suburb of Lake Oswego. These, too, can be
reached by bus. And if the rare opportunity arises for an invitation to a craft
brew barbeque from tri-Met's own Jeff Frane...take advantage of it.

The Widmer Brothers Brewery offers free tours at 3 p.m. Fridays and at 1 and 2
p.m. Saturdays. No reservations necessary. Phone: 503-281-3333. For general
information on Portland and accommodations, contact the Portland Oregon
Visitors Association. Phone: 877-678-5263.

http://news.excite.com/news/r/010209/09/odd-viagra-dc

Soft Drink with Viagra Ingredient Banned

February 9, 2001

TOKYO (Reuters) - A soft drink containing an ingredient of the impotence drug
Viagra has been banned by Japanese officials. The acted after advertisements
for the drink, touted as "the solution to your nighttime problems," appeared in
men's magazines and on the Internet.

Some 47,000 bottles of the non-prescription 'Hard Big Dickie' drink were
imported from China a year ago, and all but 4,000 had already been sold,=
mainly in pharmacies around Nagoya, western Japan, said a local government
official there.

Each bottle of 'Hard Big Dickie' contained 64.3 milligrams (mg) of the chemical
sildenafil, the active ingredient in Viagra, far more than the 25 or 50 mg in
one tablet of Viagra sold in Japan, the official said.

"It could definitely have the same effect as Viagra," she said.

Each 20-milliliter bottle was priced at 3,000 yen ($25.70), compared with 1,100
to 1,300 yen per tablet for Viagra. The official said the drink contravened
Japanese drug laws.

The firm that imported the drink said it was made from squeezed Chinese fruits
resembling grapes, and it was unaware of the chemical, Kyodo news agency
reported.

An estimated 9.8 million men in Japan suffer from erectile dysfunction.

http://news.excite.com/news/ap/010210/01/biz-genetic-tests

February 10, 2001 By GREG TOPPO, Associated Press Writer

WASHINGTON (AP) - Railroad workers whose injury claims were met with a blood
test that probes their DNA had their civil rights violated, the federal
government says in a lawsuit.

In the first federal case of its kind, the Equal Employment Opportunity
Commission on Friday sued Burlington Northern Santa Fe Railroad, saying it
required genetic tests for employees who filed claims for certain work-related
hand injuries. The agency asked that the railroad end the testing of workers
who make claims for carpal tunnel syndrome. It said the employees were not
asked to consent to the tests and at least one worker who refused to provide a
blood sample was threatened with losing his job.

It is the first time the commission has challenged such tests, which it
contends violates the Americans With Disabilities Act, chairwoman Ida L.
Castro said.

"As science and technology advance, we must be vigilant and ensure that these
new developments are not used in a manner that violates workers' rights,"
Castro said in a statement. The railroad tested the samples for Chromosome 17
deletion, the commission said. Some studies have suggested that would
predispose a person for some forms of carpal tunnel syndrome.

The condition and related injuries caused by repetitive hand motions are the
leading workplace occupational hazard, according to the National Academy of
Sciences.

The National Conference of State Legislatures says laws in 22 states prohibit
discrimination in the workplace based on genetic testing, but only seven states
have specific penalties for breaking the law. Dick Russack, spokesman for
Burlington Northern Santa Fe, said the railroad does ask employees who file
disability claims
for the condition to undergo genetic testing, which he said could show that the
injury was not work-related. But he denied that anyone had been disciplined or
threatened for refusing.

The company began the testing program last year on the advice of its medical
department, he said, and about 20 people, less than 10 percent of those
claiming the disability, have been tested.

Russack said the lawsuit caught the railroad by surprise. "They (federal
officials) usually ask for a meeting or mediation," he said. The lawsuit, filed
in federal court in Sioux City, Iowa, asks that the Texas-based railroad end
its nationwide policy of requiring employees who have submitted claims of
work-related carpal tunnel syndrome to provide blood samples.

The commission said the blood tests violate workers' "most intimate privacy
rights" and are "an invasion of privacy and a person's bodily integrity."

"A person who has been forced to give blood will never be made whole, and
genetic information that is revealed can never be concealed," the lawsuit said.

Basing employment decisions on DNA testing violates the Americans With
Disabilities Act, in part because the exam is not job-related or "consistent
with business necessity," said commissioner Paul Steven Miller.

"Any test which purports to predict future disabilities, whether or not it is
accurate, is unlikely to be relevant to the employee's present ability to
perform his or her job," Miller said in a statement.

Four unionized workers - three from Nebraska and one from North Dakota -
charged the railroad with discrimination, also alleging that the railroad
required them to submit lists of all family members who had been diagnosed with
carpal tunnel syndrome. Complaints were also filed on behalf of members of the
Brotherhood of Maintenance of Way in Nebraska and Minnesota.

Burlington Northern Santa Fe operates one of the largest rail networks in North
America. It stretches 33,500 miles and covers 28 states and two Canadian
provinces.

The Occupational Safety and Health Administration says that each year, 1.8
million workers have musculoskeletal injuries related to working conditions.
OSHA says 600,000 people miss work because of them.

[J2jurado]

Bass May Sell Pubs to L&G Ventures for $900 Mln, Paper Says
(Sunday Telegraph 2/10 p. 1)

London, Feb. 11 (Bloomberg)-- Bass Plc, the world's No. 2 hotel company, is
close to selling 1,000 community pubs it put up for sale last year to L&G
Ventures for 620 million pounds ($900 million) in cash, the Sunday Telegraph
reported, citing unnamed sources.

Nomura Securities Co., Japan's largest investment bank, is the only other
bidder for the pubs and may counter L&G's offer made this weekend, but people
close to the talks expect L&G to win, the paper said.

Bass, which owns and manages more than 3,000 restaurants, bars and pubs, also
will sell 11 units of its 54-strong All Bar One pub chain amid poor
performance, the paper said. The larger, market-brand outlets produce low
revenue relative to the high rents they pay, the paper said.

Bass divested its brewing unit last year and is selling pubs to focus on
faster-growing hotels. The company is looking to extend its Holiday Inn
franchise and upscale Inter-Continental chain in the U.S. and to expand its
Holiday Inn and Express in western Europe.

Diageo, Domecq mull Kendall-Jackson bids -paper

LONDON, Feb 10 (Reuters) - British drinks companies Diageo <DGE.L> and Allied
Domecq <ALLD.L> are both mulling bids for $1.2 billion Californian wine
producer Kendall-Jackson, the Sunday Business newspaper said.

Privately owned Kendall is expected to put itself up for sale in the next few
weeks, it said. The newspaper said both UK groups may bid but gave no source
for its report.

Olympics - Greeks pick local brewer, bank sponsors

ATHENS, Feb 10 (Reuters) - Australia may be a land of beer drinkers but the
Greek brewer of Heineken has put them under the table as a local sponsor.

Athens 2004 organisers said on Thursday they had secured two more contributors
for the Games -- a bank that will pay more than anyone previous local sponsor
and a brewer that has tripled what its Australian counterpart paid.

Athinaiki Brewery, Greece largest, won the 2004 sponsorship by agreeing to pay
$16.5 million.

It brews Amstel, Fischer and a local beer called Alfa but a spokeswoman for the
Athens Organising Committee (ATHOC) said the brewery planned mainly to feature
its Heineken product at the Games.

ATHOC said the bid was three times that of the local Sydney Olympics brewery
sponsor.

The organisers also said that Alpha Bank, Greece's second largest bank, had
beaten out four other Greek banks to win the local banking sponsorship slot
with $70 million.

It said that was the largest amount ever paid for local sponsorship, eclipsing
$50 million announced in November when local telephone company OTE became the
telecommunications sponsor.

Six jailed in UK crackdown on smuggling

LONDON, Feb 9 (Reuters) - British Customs claimed a major success for their
crackdown against tobacco and alcohol smugglers when four Britons, a German and
a Greek were jailed for a total of 11-1/2 years on Friday.

The six men were arrested in June last year when customs officers raided a
timber yard in North Wales and found five million cigarettes, smuggled in from
Greece with no duty paid.

"We are confident we have taken out a major criminal organisation," Customs
spokesman Bill O'Leary said.

High duty on tobacco and alcohol in Britain, compared with some neighbouring
European Union states, has created a booming black market. Officials say up to
a quarter of cigarettes smoked by Britons are smuggled.

Customs say 2.5 billion pounds ($3.6 billion) of government revenue is lost as
a result. Last year the government created 1,000 more Customs and Excise jobs
and earmarked an additional 200 million pounds to try to tackle the problem.

"We are beginning to see some significant successes," O'Leary said, adding that
more prosecutions of suspected smugglers were in the pipeline.

On Friday, Knutsford Crown Court sentenced Paul Glendenning, described as the
ringleader, to four years in prison. The 148,000 pounds in cash found in his
car was confiscated.

The two drivers of the lorry which transported the cigarettes from Greece,
German Jacob Grabinski and Ioannis Metallides of Greece, received three years
each. The 267,000 pounds in cash found in the lorry were also seized.

Pernod sees Seagram disposals in 12 months

By Caroline Brothers

PARIS, Feb 11 (Reuters) - French drinks group Pernod Ricard <PERP.PA>, fresh
from triumph in its joint $8.15 billion bid for Seagram's spirits empire, said
disposals of secondary Seagram <<A HREF="aol://4785:V">V.N</A>> <EAUG.PA>
brands should take place within a year.

A new round of consolidation in the fragmented global drinks industry will
unfurl once EU, U.S. and Canadian anti-trust bodies give the green light to the
acquisistion Pernod clinched with industry leader Diageo <DGE.L> in December.

Pernod and Diageo will then be able to start divesting non-core Seagram brands,
including Mumm Sekt, Passport whisky and Sandman port, from which they hope to
make $700 million.

Separately Pernod, catapulted to third place from fifth in the world industry
after the Seagram buy, said it was close to selling its Orangina soda label to
Cadbury Schweppes <CBRY.L>.

"The (Seagram) sell-offs will take place within a year from the date we get
approval from Brussels, the United States and Canada," Chairman Patrick Ricard
told a news conference to discuss Pernod's 2000 sales.

The proceeds should cover restructuring costs, and any extra will be divided
according to the 38.4/61.6 joint venture terms, Ricard said.

Pernod has pencilled in an April 1 start for consolidating the Seagram buy,
pending approval. "Perhaps that is a bit ambitious, but we want to be in
operation by April 1," he said.

The French group famed for its eponymous aniseed liqueur and which also owns
Havana Club rum and Bushmills Irish whisky, aims to divest all assets outside
its core wine and spirits business to help foot its $3.15 billion bill for the
acquisition.

ACCESS TO CHINA

Pernod is also planning a convertible bond of up to 500 million euros, with a
possible 7-year maturity, to coincide with approval for the Seagram deal. The
banking syndicate is already being assembled, Finance Director Laurent
Lacassagne said.

Talks with Britain's Cadbury over selling it the Orangina soft drink business,
which merged last year with Pernod's fruit juice unit Pampryl to produce
turnover of 2.8 billion euros, are "well advanced," Ricard said.

"We hope to finalise it in the coming weeks," he added. Pernod's U.S. chocolate
drink business Yoo Hoo, which has $120 million in sales, is also part of the
deal.

Managing director Pierre Pringuet said Pernod hopes to make "more than $1
billion" selling its non-strategic drinks assets including its cider business.
Its SIAS fruit preparations and its retail division that includes BWG
wholesalers, British wine stores Oddbins, and SPAR corner stores are also up
for sale.

Pernod says the Seagram buy will double its spirits turnover to 3.6 billion
euros from 1.8 billion in two years and boost earnings as a percentage of
turnover (EBIT/sales) to 21.5 percent in 2002 versus 16.5 percent at present.

Earlier on Friday Pernod announced 2000 turnover in line with forecasts, up 22
percent at 4.38 billion euros.

That was led by 35 percent growth in its retail division, while fruit
preparations rose 26 percent. Wines and Spirits tallied 12 percent growth, or
6.2 percent on an organic basis, to 1.759 billion euros.

Pernod forecast a 7.0 percent increase in 2000 pre-exceptional profit but said
net profit would fall due to one-off charges related to the Orangina-Pampryl
merger and to its exit from joint ventures in local wines and Couroy liqueur in
China.

Pernod will get renewed access to the Chinese market via Martell, the cognac
brand it bought under the Seagram deal.

Pernod stock, which closed flat on Friday at 76 euros against the SBF120 index
that ended off 1.08 percent, has been on a Seagram-fuelled upward trajectory
since October. It hit a year-high of 80 euros on January 26, beating the DJ
Eurostoxx food and beverage index <.SX3P> by 0.4 percent this year.

Lion gains upper hand in battle for NZ's Montana

By Lincoln Feast

WELLINGTON, Feb 10 (Reuters) - Australasian brewer Lion Nathan on Friday gained
the upper hand in its battle for control of Montana Group (NZ) Ltd, saying it
now controls 46.46 percent of the New Zealand winemaker.

Lion's bid for a 51 percent stake in Montana at NZ$4.65 a share values Montana
at around NZ$998 million ($434 million), trumping the world's second largest
wines and spirits company Allied Domecq's offer at NZ$4.40 for all the shares.

Lion said it had secured binding agreements from a range of investors for it to
buy around 18.19 percent of the shares in Montana, on top of its previous 28.27
percent stake.

"Lion Nathan will stand in the market to acquire the remaining approximately
4.5 percent which Lion Nathan is required, by NZSE (New Zealand Stock Exchange)
rules, to acquire on market," Lion said in a statement.

Montana shares were suspended from trading on the New Zealand Stock Exchange on
Friday at the request of Montana directors.

Lion said it would stand for the remaining 4.5 percent of Montana on Monday,
when trading in its shares resumes, in maximum parcels of 5,000 shares until
midday on a first come first served basis. If not completed by then, the stand
would continue in the afternoon for blocks of more than 5,000 shares on the
same basis, Lion said in a statement.

LION THE KINGPIN

Analysts said it appeared Lion had gained a solid advantage in the contest for
Montana, which is viewed as an attractive entry point into the burgeoning
Australasian wine market, particularly given Montana's recent acquisition of
major domestic New Zealand competitor, Corban's Wines.

"It's sounding more and more like it's a done deal," UBS Warburg analyst
Malcolm Davidson said.

With Lion's average entry price for its 46.46 percent stake at around
NZ$3.27/share, it could afford to pay significantly more and remain below the
NZ$3.20 -NZ$3.80 range nominated in its original partial bid filed in November,
he said.

Another analyst, who asked not to be identified, said there was a slim chance
Allied may reach a minimum threshold of 50.01 percent it maintained for its
bid.

"We've been surprised in the past but you would think it would be very
difficult for them at this point in time."

Allied -- whose brands include Beefeater gin, Ballantines whisky,
Baskin-Robbins icecream and Dunkin' Donuts -- on Friday removed some of the
conditions of its bid and reiterated that its full offer represented better
value for all shareholders.

It could have one more throw of the dice on Monday when trading would resume in
Montana -- if it chooses to up its bid, analysts said.

MONTANA SHARE TRADING SUSPENDED

Montana directors called for the suspension in response to a NZSE waiver that
would have allowed Lion to buy shares on Friday, rather than serve a two day
notice-and-pause provision -- giving Allied Domecq time to regroup.

Montana directors were also unimpressed by the partial nature of the Lion bid,
which they said left small shareholders out of the potential transaction.

"It would appear that we achieved our objective in terms of price but not at
this stage in terms of obtaining an offer available to all shareholders," the

directors said in a statement.

Lion, 45 percent owned by Japan's Kirin Breweries, said a pro rata offer was
not feasible.

"We did look at the possibility of doing it pro rata but decided that that was
not achievable in the timeframe we had available," Lion spokesman Warwick Bryan
told Reuters.

Montana directors said Allied had planned a counter bid but had been caught out
by the waiver.

The NZSE was not immediately available to comment on the waiver but said in a
statement the suspension was made "to ensure investors had the opportunity to
make uniformly informed investment decisions."

Montana shares closed up 63 cents at NZ$4.67 on Thursday. Lion shares ended in
NZ down 10 cents at NZ$4.80, while in Australia they last traded down six cents
at A$3.84.

CAUGHT NAPPING

Analysts said the NZSE waiver allowed Lion to pounce quickly and appeared to
have caught out Allied Domecq.

"They basically got caught with their pants down...I'm shocked that Allied
Domecq didn't have an expectation that Lion would make a counter offer and move
reasonably quickly on it," one analyst said.

Also caught out was Montana executive chairman and 20 percent shareholder Peter
Masfen, who had previously matched Lion's initial NZ$3.20 - NZ$3.80 indicative
bid lodged last year because he thought it was too low.

"It seems like Masfen has been left high and dry and I don't think he'll be a
happy chappy," the analyst added.

Masfen was not immediately available for comment. (NZ$1-$0.4350)

Coffee rush returns to haunt protest-hit Vietnam

HANOI, Feb 10 (Reuters) - Life has improved greatly in Vietnam's protest-hit
central highlands compared with 10 years ago, but the region has been hit hard
in the past year by the plunge in world coffee prices.

And no group has been hit harder than the ethnic minority hill farmers who have
lived in the area for generations and remain the poorest people of the region.

In the 1990s, the farmers, who have staged big protests in recent days, were
persuaded to turn over land to waves of lowland settlers to create vast coffee
plantations as Hanoi embarked on a policy to become a global player in the
commodity.

"Low world prices have affected the life of the people in Daklak and are
partially to blame for the recent unrest," a Ho Chi Minh City-based coffee
trader said on Friday.

For several days from late last week, discontent over land erupted into
protests of unprecedented size for communist-ruled Vietnam as thousands of
members of the Gia Rai and Ede minorities demonstrated in Daklak and
neighbouring Gia Lai provinces.

According to state media and residents, protesters injured police in clashes,
beat officials, destroyed schools and state property and held some ethnic
Vietnamese hostage.

Analysts say the protests can be seen as the culmination of years of mounting
tension among the minorities who sided with U.S. forces during the Vietnam War
and who have never been well disposed towards communist rule.

Their adjustment to communist rule has been made harder by the loss of vast
swathes of what they consider to be ancestral lands to lowland coffee concerns.

Daklak's plantation area has increased by more than 300 percent to 260,000
hectares (642,460 acres) since 1990.

COFFEE DOMINATES

Today about 70 percent of the 1.86 million population of the province is ethnic
Vietnamese and traders estimate that up to 80 percent of the population -- both
lowlanders and ethnic minorities -- are involved in coffee business.

Many have suffered since world prices plunged to 30-year lows last year and
domestic prices fell below production costs.

Ironically a key reason for the price plunge was massive increase in supply
from Vietnam, which is now the world's number one producer of robusta coffee.

Domestic prices have fallen from 12,000 dong (83 cents) a kg (2.2 lb) last
February -- and 40,000 dong in 1995 -- to the current level of 5,700-5,800
dong.

In the process, Daklak's annual per capita has fallen from $490 in 1996 to $388
last year.

Farmers told Reuters during a recent visit to the province that they were
reluctant to harvest their latest crop.

"If one does harvest, one will face losses immediately as prices just drop,"
one grower said.

"Daklak farmers used to go harvest coffee, bringing along beer to celebrate a
bumper crop -- now they come and go empty-handed," the first trader said.

A private coffee trader in Daklak said the downturn had been particularly
severe for ethnic minority farmers who formerly practised slash and burn
agriculture and who lack the market knowledge, education and access to
technology of the Vietnamese.

"They have been asking the authorities to return their land as their life has
been miserable in areas they have been moved to," the trader said.

He said the downturn in the coffee market had exacerbated envy and resentment
they felt towards lowlanders.

Analysts say such resentment has combined with discontent over heavy-handed
attempts to impose the authority of the ruling Communist Party, including
harassment of illegal protestant "house" churches to which many minority
farmers belong. ($1-14,540 dong)

Beverage Forum in NYC Announced

Feb. 9, 2001 - Beverage Marketing Corporation and Beverage World present The
Beverage
Forum 2001, April 11-12, 2001, The Waldorf-Astoria, New York City--The
only global all-beverage executive conference, the most dynamic networking
event of the year! To register, visit
http://www.beverageworld.com/conferences/bevforum.html

YES, YES, YES...

February 9, 2001- New technology will be decidedly pleasing. Stuart
Meloy, a surgeon at Piedmont Anesthesia and Pain Consultants in
Winston-Salem, North Carolina, has developed a device which, just like
Woody Allen's orgasmatron, guarantees pleasure at the push of a button.
Orgasmic dysfunction is not uncommon among women and its causes are many
and varied. The new device consists of an implanted signal generator and
electrodes which stimulate appropriate spinal nerves when activated by a
hand-held remote control. Wisely, Meloy has programmed his invention to
limit its use. After all, we don't want people using it while they're
driving - we've had enough trouble with mobile phones.
http://www.newscientist.com/news/newsletter.jsp?id=ns227731

Maryland professor agrees Claudius was poisoned

By Maggie Fox, Health and Science Correspondent

WASHINGTON, Feb 9 (Reuters) - Sometimes history is right. The Roman emperor
Claudius, who died suddenly in AD 54 at the age of 64, was probably given
poison mushrooms by his fourth wife Agrippina, a doctor concluded on Friday.

Historical scuttlebutt holds that Agrippina, who was both the niece and the
wife of Claudius, mixed poison mushrooms in with his dinner on Oct. 13, AD 54.

Dr. William Valente, a clinical professor of medicine at the University of
Maryland who took a fresh look at Claudius's case nearly 2,000 years later,
concurs.

"The medical and historical evidence suggest that Claudius was given mushrooms
that contain muscarine, a deadly toxin that attacks the nervous system, causing
a wide range of agonizing symptoms," he said.

Valente had to diagnose the case based on just a few paragraphs of the known
medical history as part of an annual event held by the Veterans Affairs
Maryland Health Care Center in Baltimore and the University of Maryland. His
findings were being presented as part of a conference on Friday.

Most historians had agreed that Claudius, the emperor who finally conquered at
least part of Britain and who established colonies in North Africa, was the
victim of foul play.

"He died suddenly after a meal in which he'd been drinking heavily and stuffing
himself," Dr. Philip Mackowiak, chief of medicine at the Baltimore VA medical
center and one of the conference organizers, said in a telephone interview.

"He was especially fond of mushrooms," Mackowiak added.

"The prevailing theory is he was given poison mushrooms, probably by his wife
Agrippina, who wanted to make sure her son Nero was the successor. He was in
the process of maybe thinking of appointing his son Britannicus as successor."

POISON MUSHROOM FITS THE BILL

Valente said there is a poison mushroom that causes the deadly symptoms
described as having caused Claudius's death.

"There are a lot of secretions in the mouth and explosive diarrhea and vomiting
and belly pain. That is exactly what happens if you eat a muscarine mushroom,"
he said.

Claudius became confused and then comatose and died within 12 hours.

Today, atropine can be administered to someone who accidentally eats such a
mushroom. Claudius was not so lucky.

As part of the game, Valente did not at first even know who the victim was and
had to figure it out from clues.

"He kept the company of many women, despite some odd physical attributes,"
Valente said. Claudius, who took the Roman throne after the death of his nephew
Caligula, walked with a limp, drooled and had trouble speaking clearly.

Valente explained how he concluded Claudius was the victim.

"He was fond of fine wine and food, so he would have to be either French or
Italian. I can't imagine any self-respecting Frenchman would spend his life in
Italy. And what Italian would have four wives? He had to be a Roman. And what
Roman had such a violent family history? He would have to be an emperor?"

Yet Valente still had trouble figuring it out until he saw a program on
Claudius, whom he thinks probably suffered from a nervous system ailment known
as dystonia, on public television.

"That may have been the reason for his death because those particular mushrooms
are particularly toxic for somebody with dystonia because he had trouble
swallowing and speaking," Valente said. "It was a well-chosen poison for
Claudius."

In 2000 the same group decided the composer Mozart died of acute rheumatic
fever. They have also guessed at some medical mysteries, concluding that writer
Edgar Allen Poe died of rabies and that Alexander the Great died of typhoid
fever.

[J2jurado]

Fosters' profits above expectations

Australia's biggest brewer, Fosters, has reported an almost 10 per cent rise
in its first half year net profit but more likely because of wine rather than
beer sales.

Fosters' profit rose to $293 million which was above analysts' expectations.

But the company has taken a one-off abnormal loss of $26 million mainly
reflecting its declining investment in Wine Planet, the online wine retailer.

The half-year result was helped by a before tax contribution of $64 million
from the American wine company Beringer Wine Estates that Fosters bought last
year.

Earnings from its Mildara Blass wine business rose 17 per cent, but beer
earnings rose only 5 per cent.

At 11:00am AEDT, Fosters' share price had risen seven cents to $4.61.

Foster's(FBG.AX)Beringer buy boosts first half profit

By Simone Deane

MELBOURNE, Feb 12 (Reuters) - Australia's largest brewer Foster's Brewing Group
Ltd posted a higher than expected 21 percent lift in first half net profit on
Monday as its big investment in Beringer Wine Estates started to pay off.

Foster's stock rose as much as four percent to A$4.72 after the beer, wine and
spirits maker said pre-abnormal net profit rose to A$293.1 million (US$158.3
million) for the six months to December 31, 2000. Analysts surveyed by Reuters
had forecast a pre-abnormal profit of A$268 million.

After a one-time loss of A$26 million -- related to Olympics and Wine Planet
provisions and the sale of its Molson interests -- bottom line net profit was
up 9.8 percent to A$267.1 million.

And Foster's believes the gains can continue.

"In the absence of unforeseen circumstances, we do see our growth continuing
into the second half," chief executive Ted Kunkel told reporters when asked
about the profit outlook.

"We do have the right mix of cash and growth businesses in our portfolio and
our risk profile is spread across continents and currencies," Kunkel said.

Foster's shares closed up 12 cents or 2.6 percent to A$4.66 in active trade of
7.9 million shares, after touching a three week high at A$4.72. Foster's rise
outpaced a 0.5 percent gain in the broader market.

BERINGER BUY BOOSTS SALES

Foster's sales climbed 21.6 percent to A$2.04 billion in the first half, buoyed
by its US$1.6 billion acquisition of U.S.-based Beringer and international
sales of beer and wine.

Beringer also added a higher than expected A$63.7 million to earnings before
interest and tax (EBIT) in the first half results even though it was part of
the group for only three months.

"I was expecting a worse result from Beringer ... it was surprisingly strong,"
said a Sydney-based analyst who declined to be named.

The earnings growth came even as beer and wine volumes in Australia suffered
because of unsettled trading conditions caused by the introduction of a goods
and services tax and the Olympics.

"Despite more conservative consumer spending habits during the half, Foster's
core Australian businesses still delivered EBIT growth and strong cash
generation through their ongoing focus on premium brands, cost reductions and
margin management," Foster's said.

WINE DRIVES EARNINGS GROWTH

Foster's Mildara Blass wine unit delivered a 17.1 percent rise in EBIT to
A$103.9 million. However, when Beringer is added total wine EBIT rises 89
percent to A$167.6 million.

Wine now accounts for about 60 percent of Foster's assets and is the group's
key growth driver, although the lower growth beer unit is still delivering the
majority of earnings.

Carlton and United EBIT, which includes Australian beer, spirits and leisure
and hospitality, rose 4.9 percent to A$297.8 million. The Australian beer unit
alone, which has about 55 percent market share, lifted EBIT 5.1 percent to
A$231.1 million.

Carlton and United had been delivering double-digit EBIT growth, but Kunkel
said Foster's was now targetting growth of three to five percent for the unit
as it was a mature business.

However, there is beer growth internationally with EBIT from the unit more than
doubling to A$8.9 million.

(A$1 - US$0.54)

Bad spirit kills five Korean sailors-Vietnam media

HANOI, Feb 12 (Reuters) - Five North Korean sailors died of alcohol poisoning
last week on board a cargo ship sailing home from Singapore, Vietnam's official
media reported, but a hospital said it had managed to save three of their
colleagues.

Monday's Thanh Nien (Young People) newspaper said the sailors were from the
North Korean cargo ship Kangsong 3, which made an emergency stop in southern
Vietnam last week to seek treatment for the sick sailors.

It said the five sailors died after drinking an alcoholic spirit on board the
ship.

A doctor at Le Loi Hospital in Vietnam's southern province of Ba Ria-Vung Tau
said three male sailors were brought in with headaches, stomach aches and
digestive troubles.

"They were suffering acute stomach aches," the doctor told Reuters. "They said
they had had some sort of alcohol."

He said the three checked out of the hospital the same day after receiving some
medicine.

"Their condition was not serious," he said.

Thanh Nien said the North Korean vessel resumed its voyage at the weekend.

San Miguel <SMC.PS> lower after 2000 results

MANILA, Feb 12 (Reuters) - Shares of food and beverage giant San Miguel
Corporation were lower on Monday after the company reported its 2000 results.

"It was a case of sell on the news (of the results)," Securities 2000 Inc
analyst Jeanette Yu Tan said.

San Miguel posted 2000 net income of 7.5 billion pesos, sharply higher than the
6.01 billion it posted a year ago.

The figure was also higher than analysts' expectations of 6.9 billion pesos.

At 0244 GMT the A-shares were down 50 centavos at 51 pesos and the B-shares
were down one peso at 62.50 pesos. The main index, Philippine composite index
<.PSI>, was up 15.27 points to 1,710.86 at 0255 GMT.

A-shares will go ex dividend on February 13.

Yu Tan added that with such a strong result there could now be concerns about
the company's 2001 earnings as it sought to fold in its newly acquired majority
holding in Coca Cola Bottlers Philippines.

San Miguel forged an agreement worth $1.2 billion last week to re-acquire 65
percent of the local bottling operation from Australian-based Coca-Cola Amatil
<CCL.AX>. It sold the operation to Amatil in 1997 in exchange for a stake in
the Australian firm.

"With such a good year in 2000 there may be concerns about 2001, especially
with Coca Cola Bottlers not seen as earnings accretive in the first year," Yu
Tan said.

"People may also be factoring in the uncertainty over the reign of Eduardo
Cojuangco," she said.

Cojuangco, who is chairman of the company, currently has majority control of
San Miguel but with the government laying claim to sequestered shares in the
firm there has been speculation it may seek to unseat Cojuangco as head of the
company.

Yu Tan added that in 2001, San Miguel was unlikely to benefit from the foreign
exchange gains that it booked last year given the steadier peso.

"The size of the profit (for 2000) was a surprise and is probably because they
booked a large foreign exchange gain from their big dollar cash pile. For the
first nine months they booked one billion pesos in forex gains and in the last
quarter the peso depreciated sharply," Yu Tan said.

She said the strong operating performance of unit La Tondena <LTDI.PS> a hard
liquor, juice and water business along with the international beer operations
which turned a profit for the first time, both helped San Miguel's bottom line.

Yu Tan said in the first nine months of last year the firm's interest charges
were down by more than 50 percent from the year earlier period.

However given the above consensus performance and concerns about the folding in
costs of Coca Cola Bottlers and the ownership issue she was now looking at a
contraction of earnings for 2001 of "at least 10 percent."

[J2jurado]

German brewery offers self-cooling beer keg

BERLIN, Feb 12 (Reuters) - Known around the world for their affinity for beer,
Germans have found a way to keep the precious liquid cool even if they are
nowhere near a refrigerator.

The Tucher brewery of Nuremberg says it has invented the first self-cooling
keg, which it says will chill beer to a frosty eight degrees celsius within 30
minutes, according to a front page report in Bild newspaper on Monday.

The reuseable, double-hulled 20-litre (five gallon) keg uses water vapour and a
cooling agent to keep beer cold for up to eight hours, no matter how hot it
gets.

Costing 80 marks ($35), the keg is more expensive than conventional barrels,
but as the Tucher website says: "Finally you can always have beautiful, cool
brews on hand!"

Carr rejects call for liquor market deregulation
12 February, 2001

The New South Wales Government is set to go head to head with the National
Competition Council over the issue of deregulating the liquor retailing
industry.

The council wants New South Wales to relax its liquor trading laws, saying
current regulations, limiting the entry of new retailers and the hours liquor
can be bought, restrict competition.

But Premier Bob Carr has expressly ruled out deregulating the industry.

"You've got a structured liquor industry in this state, it is worthwhile to
maintain that structure and work with that structure rather than seeing liquor
distributed through service stations, supermarkets and corner stores," he
said.

"The second point I make is - we've got a problem with underage drinking and
that problem would only get worse in a system of liquor market deregulation."©
2001 Australian Broadcasting Corporation.

UK's Allied set for another drinks set-back

By David Jones

LONDON, Feb 12 (Reuters) - Britain's Allied Domecq Plc appears outmanoeuvred in
its attempt to buy New Zealand's largest wine producer only two months after
failing to capture Seagram's drinks empire, but it is still keen on wine.

Allied looks set to lose the race for winemaker Montana Group (NZ) Ltd to Lion
Nathan, largely due to arcane New Zealand stock market rules which act to
discriminate against small investors. However, it appears to have its eyes on
other New World winemakers too.

Both Diageo and Allied, the two largest spirits groups in the world, have been
assessing New World winemakers and have caste their eyes over Californian wine
maker Kendall-Jackson, which may be worth around $1.2 billion.

The two are looking to wine to offset sluggish spirits growth and have examined
Australian and Californian groups. Diageo's interest heightened after its joint
Seagram's drinks acquisition added Sterling wines to its own Nappa valley
wines.

Both have looked at Australia's largest wine maker Southcorp

with brands like Penfolds, Lindeman and Seaview, and also two other big wines
groups BRL Hardy Ltd and wine and beer group Fosters Brewing.

French group Pernod-Ricard is one of the few European drinks companies with a
foothold in Australasia through its Orlando division and its Jacob's Creek
brand.

Allied's wine interests are currently focused on the U.S., with Atlas Peak,
Callaway, and William Hill Winery brands, but its Australian Chief Executive
Philip Bowman is keen to expand especially with the popularity of New World
wines in Britain.

Diageo's Chief Executive Paul Walsh is also determined to expand further into
wine and is believed to be looking at California, Australia and Chile. Last
December, Diageo and Pernod acquired the Seagram drinks business for $8.15
billion.

Allied shares were marked down 1-1/2 pence at 435p, while Diageo was off 13p at
688p in a firmer London market by 1230 GMT.

ALLIED SET TO LOSE MONTANA

Allied appears to have been pipped to Montana by brewer Lion Nathan Ltd, which
held 28 percent of Montana before launching a bid at NZ$4.65 a share to take
its stake to 51 percent, valuing the whole of Montana at NZ$998 million.

Lion is set to confirm Tuesday that it has gained a majority of Montana's
shares to see off Allied's bid for the whole of the company priced at NZ$4.40 a
share.

The winemaker accounts from around 45 percent of total New Zealand wine
production and its brands include Montana, Corban's, Lindauer and Brancott
Estate.

Lion has been picking up shares from large Montana shareholders to increase its
stake to near 51 percent, leaving small shareholders empty handed. The rules
regarding this type of partial offer are about to be changed with a new
takeover code to be introduced in July to protect small shareholders.

Under UK rules, once a bidder has 30 percent of its target, it must make an
offer for the whole of the share capital.

After losing out in the Seagram's auction because it could not afford the hefty
price, Allied has embarked on a patchwork of in-fill deals around the world
which have included wine.

In December, it bought the Mumm and Perrier Jouet champagne brands from U.S.
private equity group Hicks, Muse, Tate and Furst, which bought them 18 months
earlier from Seagram.

Allied also said it had secured the rights to Captain Morgan rum, a claim which
both Seagram and Diageo are contesting in the Puerto Rican courts as Diageo
bought the brand in the Seagram auction. Allied has also gained the U.S. rights
to Stolichnaya vodka, although ownership of the Russian brand is unclear.

San Miguel Corporation Posts 25% Gain in Net Recurring Profit for 2000

MANILA, Philippines--(BUSINESS WIRE)--Feb. 12,2001--San Miguel Corporation
(SMC), the Philippines' largest food and beverage company, ended the year 2000
with a recurring net income of P7.5 billion ($170 million(a)), an increase of
25% over the previous year's P6.01 billion

($136 million). This reflects the sustained focus on performance and results of
SMC's management team led by Chairman Eduardo Cojuangco, Jr., despite increased
business challenges in the second semester of the year.

Operating income amounted to P7.9 billion ($179 million), 19% higher than the
year-ago level of P6.7 billion ($151 million), as greater efficiencies and cost
management initiatives offset the increases in production costs brought about
by higher raw material prices, fuel costs and the depreciation of the peso.

San Miguel's consolidated net sales reached P88.7 billion ($2 billion), up 17%
from P75.6 billion ($1.7 billion) the year before. This was brought on by
double-digit growth across all businesses. Growth was at 14% in beverages, 16%
in packaging and 12% in food. The significant improvement in copra supply
likewise contributed to the strong sales performance as the coconut oil
business grew more than three-fold.

Including non-recurring items, net income is at P6.8 billion ($153 million), an
increase of 14% over 1999. The non-recurring item consists of a P670 million
($15 million) provision on the redemption of HOC Realty, Inc.'s P1.3 billion
($29 million) worth of preferred shares issued in 1996 for the redevelopment of
the Head Office Complex.

San Miguel's domestic beer operations increased sales revenue by 2.1% from 1999
levels. The Company succeeded in containing costs, despite rising costs of raw
materials due to the peso's depreciation, through tighter management of
resources and higher efficiencies. Operating income amounted to P4.1 billion
($93 million).

Domestic beer volumes, affected in the second semester by declining consumer
spending, the Mindanao conflict and weak farm incomes, declined by 3% against a
4.2% drop in industry volumes. The Company managed a slight gain in market
share from 90.1% to 90.5% through optimized trade coverage and availability.

SMC's international beer operations (excluding J. Boag and Son) sustained the
turn-around momentum that began in the last quarter of 1999. Operating income
of US$3.8 million in 2000 is a complete reversal from the previous year's loss
of US$6.3 million. The improvement in operating performance was driven by
volume growth of 11%, rationalized sales and distribution systems and
continuing cost management programs.

Last June, SMC acquired Australian brewer J. Boag and Son, a leader in
Australia's premium beer segment. J. Boag contributed significantly to SMC's
over-all results with an impressive volume growth of 21% since the acquisition,
driven by its flagship brand James Boag Premium. Sales revenue in the second
semester of 2000 amounted to US$21.7 million with operating income at US$2.86
million.

La Tondena Distillers, Inc. performed outstandingly as revenues and operating
income reached record levels since San Miguel acquired it 13 years ago.
Revenues are up 34% from the previous year at P14.2 billion ($321 million),
operating income is up 23% at P2.9 billion

($66 million), and net income is up 34% at P1.35 billion ($31 million). This
unprecedented growth is the result of increased volume in hard liquor, the full
integration of Wilkins in the bottled water segment and the acquisition of
Sugarland.

Sales volumes of San Miguel Food Group improved significantly in 2000 with most
products registering growth rates ranging from 4% to 113%. Improved poultry
prices and better demand for basic meats and feeds drove the Group's revenues
to P17.6 billion ($398 million), up 12% from the 1999 level of P15.7 billion
($355 million). Operating income was at P576 million ($13 million).

Revenues of the Packaging division rose 16% to P14.3 billion ($323 million) in
2000, resulting from revenue increases of 30% in the glass business, 21% in
paper and 39% in plastics. The increased total revenues combined with higher
levels of efficiency and tighter reign on costs boosted operating income by 84%
to P1.9 billion ($43 million) from P1.03 billion ($23 million) the year before.
The positive operating results of the offshore packaging facilities also
contributed to the bottom line of the division.

Founded in 1890, San Miguel is the largest food and beverage company listed in
Southeast. Asia and is active within the brewing and beverages, food and
food-related, and packaging areas. San Miguel's ordinary shares trade on the
Philippine Stock Exchange and trade in ADR form in the US (each ADR is equal to
ten SMC Class B common shares). Prices for the ADRs may be accessed on the NASD
OTC Bulletin Board under the symbol SMGBY. Quotes for San Miguel ordinary
shares may be accessed on Bloomberg under the symbol SMC/B PM and on the Reuter
Equities 2000 Service under the symbol SMC.

(a) Income Statement figures have been converted for reader convenience at the
exchange rate US $1=P44.242.

Heineken Plans to Cut Jobs in Spain to Lift Profitability

Amsterdam, Feb. 10 (Bloomberg) -- Heineken NV, Europe's biggest brewer, said

it's planning job cuts to lower costs in Spain, where it became market leader
after last year's purchase of Grupo Cruzcampo SA. Details weren't provided.

``We are in talks with unions to cut the number of employees,'' said Albert
Holtzappel, a company spokesman. ``We will not have any forced lay-offs.''

Spanish daily Expansion reported yesterday the Dutch company plans to cut as
many as 2000 jobs, or 40 percent of the local workforce, and intends to spend
150 million euros for reorganizing the Spanish brewing operations.

``The 2000 number is out of the blue,'' Holtzappel said. He declined to comment
on investment costs, though confirmed Heineken is planning to modernize its
Spanish operations.

Heineken became Spain's biggest brewer after completing the takeover of
Cruzcampo last year in a transaction valuing the company at about $800 million.
In order to win approval for the takeover, the company must sell 17 percent of
its Spanish production and storage facilities.

While Heineken produces only 25 percent more than its nearest competitor Mahou
SA, the Amsterdam-based company employs 60 percent more employees per 100,000
hectoliter of beer produced. That ratio needs to fall, Holtzappel said.

Be My Immoral Valentine?

12 February 2001 LUCKNOW, India - Right-wing Hindu youths attacked shops
selling Valentine's Day cards in violent moral objection to sales of cards
"loaded with nudity and sex."

Police said shopkeepers in the northern industrial city of Kanpur were
terrified into closing their shutters after mobs led by Hindu Jagran Manch
(Hindu Awakening Forum) rampaged through an upmarket shopping district.

"They ransacked the counters and picked up Valentine's Day cards and made a
bonfire of them," Senior Police Superintendent G.P. Sharma told Reuters by
phone from the town, about 80 km (50 miles) southwest of Lucknow, the state
capital of Uttar Pradesh.

"Moral degeneration in society is entirely because of the penetration of such
Valentine's Day-type culture among our youth...a Valentine's card gets women
pregnant and drives men insane," Hindu Jagran Manch's Uttar Pradesh chief Suman
Kumar said.

"It forces children to find sex in any form they can, and we are worried about
animals," he added.

Texan drowns in vegetable oil at Frito-Lay plant

LUBBOCK, Texas, Feb 9 (Reuters) - A repairman at a Frito-Lay Inc. snack food
plant died on Friday when he fell into a 15-foot vat of unheated vegetable oil
and drowned, authorities said.

Donald Boone, 34, fell through a 2-foot hole in the top of the tank while
working to repair a float inside it, said Robert Byers, chief investigator for
the Lubbock County Medical Examiner's Office.

"The tank is just real tall and I think he went in head first. The preliminary
ruling is an accidental drowning. We're waiting on toxicology reports, but we
don't expect to find anything that will change" the ruling, Byers said.

Frito-Lay spokeswoman Lynn Markley said the oil, used to cook Fritos corn chips
and other snacks, was not heated because it was in a storage tank, not a
cooking vat.

Lubbock Police Department spokesman Bill Morgan said Boone and another man were
working on the tank when the accident happened.

"There were two men on the roof of the tank making repairs. One went down to
pick up something on the ground, he heard a noise and he said he looked up only
to see the guy's legs disappearing through the opening," Morgan told Reuters.

The oil was drained from the tank and a fireman sent in to retrieve Boone, who
died later at a local hospital, Byers said.

Boone had worked as a mechanic for six years at the Frito-Lay plant in Lubbock,
in west Texas, Markley said.

Frito-Lay, based in Plano, Texas, is a unit of PepsiCo Inc. <<A
HREF="aol://4785:PEP">PEP.N</A>>.

[J2jurado]

http://archives.seattletimes.nwsource.com:80/cgi-bin/texis/web/vortex/disp
lay?slug=wdig13&date=20010213

German brewery invents self-cooling beer keg

BERLIN - The Tucher brewery of Nuremberg says it has invented the first
self-cooling keg, which it says will chill beer to 42 degrees within 30
minutes. The reusable, double-hulled, five-gallon keg uses water vapor and a
cooling agent to keep beer cold for up to eight hours.

http://www.msnbc.com:80/news/529308.asp?cp1=1

Soda Pop That Packs A Punch- Are the new alcoholic lemonades aimed at kids?


By Geoffrey Cowley and Anne Underwood, NEWSWEEK

Feb. 19 issue — So there’s this dude named Mike, and he goes, “Lemonade
is good and all, but I bet it tastes better with alcohol.” He squeezes a
bunch of lemons, adds some sugar and malt liquor. Then he carbonates the stuff
and sticks it in a bottle.

MIKE’S TOTALLY CASUAL about it, but everybody loves his brew so much that
success sort of sneaks up on him “like a windshield sneaks up on a bug.”
That’s what it says on the six-pack. It used to say this stuff is really
great —”as in when you die and go to heaven and you go up to God and say,
‘Hey there’ and He says, ‘Hey there’ back, this is what you’ll smell
on His breath.”

Mike’s Hard Lemonade Co. of San Francisco sold 7 million cases last year,
its second on the U.S. market.

Now, we ask you, who wouldn’t suck on that bottle? Mike’s Hard Lemonade
Co. of San Francisco sold 7 million cases last year, its second on the U.S.
market. Now the business is full of fictitious cool guys—Jed, Rick, Del,
“Doc” Otis and even One-Eyed Jack—who sell fizzy-lemon malt beverages.
Like wine coolers, these “malternatives” go down like soda but pack a
beer’s worth of alcohol (about 5 percent). And their promotion convey a hip,
zany image—both on the Web and in the stores and delis where they’re sold.
That’s why critics are so riled. “These are learner drinks,” says David
Jernigan of the Marin Institute for the Prevention of Alcohol and Other Drug
Problems. “They make a mockery of the industry’s claim that it doesn’t
market to kids.”

Hard soda isn’t a new idea. In 1995, England’s Bass Brewers introduced a
malt lemonade called Hooper’s Hooch. It was a hit, and by 1996 copycat
“alcopops” had flooded the British market. Health advocates disliked the
kid-friendly promotions (some brands had fluorescent labels and psychedelic
logos), and politicians were soon demanding reform. Taxes and packaging
restrictions followed, and the market lost its fizz. U.S. brewers stoutly deny
that their malternatives are for kids. “We market this in a very responsible
manner,” says Russell Barnett of Mike’s Hard Lemonade. Other brewers take
the same stand. “Doc” Otis is intended strictly for someone “over the
legal drinking age who enjoys a malternative,” says Francine Katz of
Anheuser-Busch.

Critics don’t doubt that, but they see the sophomoric marketing campaigns as
a sure lure for teens. To confirm that suspicion, the Center for Science in
the Public Interest, a Washington, D.C.-based advocacy group, has lately been
conducting focus groups in which kids share their insights. Ten high-school
kids from the New York suburbs chatted with CSPI’s pollster recently.
Theirknowledge was impressive.


Ever heard of hard lemonade? the pollster asks. They volunteer brand names.
Does this stuff taste like beer? “No,” they sing out. What’s the appeal
of a drink like this? One of the kids explains, “It’s an opportunity for
someone who doesn’t like beer to get the same effect.”

You could say the same thing about cough syrup or strawberry daiquiris. Kids
have always liked candy-flavored cocktails, and it’s unlikely they would all
stay sober if Doc and Mike and Henry stopped squeezing lemons. “There are all
kinds of alcoholic beverages mixed with juices and sweet liquids,” says Katz,
“brandy Alexanders, grasshoppers, pink ladies.” True enough. But so far at
least, no bottler is using a talking grasshopper as a mascot.

http://news.excite.com:80/news/uw/010208/odd-77

Beer is here to stay

By Megan Gale The Daily Cardinal, U. Wisconsin Feb. 88, 2001

(U-WIRE) MADISON, Wis. -- College: for many, the word brings to mind
ivy-covered buildings, the golden leaves of ancient oak trees, football games
and late-night study sessions. Despite the efforts of the Robert Wood Johnson
Project, many of the students on the University of Wisconsin-Madison campus are
more likely to associate college with beer gardens, keg stands and drunken
stupors.

However, beer's history extends far beyond frat parties and kegs of cheap, warm
Coors on weekend nights.

In the past two decades, craft beers and microbrews have experienced a
resurgence in popularity and not just on college campuses nationwide. Beer
has enjoyed a rich and varied role throughout American history. Puritans
traveling on theMayflower depended on beer to get them across the Atlantic and
beer was a major staple of diets in the New World, enjoyed by George Washington
and Thomas Jefferson alike.

In England and early America, beer was considered to be a much healthier drink
than the usually untreated water, so beer-making quickly became part of the
colonists' routine. Before Prohibition, every city had its own brewery.

By the time Prohibition was repealed, much of the interest in brewing's rich
history had waned.

"It had been so long since anyone had experienced real beer that many of the
larger breweries skimped on quality ingredients tomake a cheap beer," said Dean
Coffey, brewmaster at Angelic Brewery, 322 W. Johnson St. "[Breweries like
Budweiser, Coors and Miller] used rice instead of specialty grains and quality
hops."

In the 1940s and 1950s, light beer brewed with rice became the norm in taverns
nationwide. In the 1980s a new American Revolution of craftbrewing began
taking place. Old breweries, like Anchor in California and Schell in Minnesota,
were revived, and new ones like Samuel Adams, Grant's and Sierra Nevada were
founded.

"By 1990, there were 200 microbreweries in the country; by 1995 there were
about 900; today, only about 750 brew pubs remain," said Ted Peterson, general
manager at The Great Dane Brew Pub, 123 W. Doty St. "We opened in November of
1994, which was almost too late to catch the brew pub craze. It was really
well-received, though, and that helped us after the peak had mellowed out."

Beer is also creeping its way into cuisine, and many brew pubs not only serve
unique, hand-crafted beers, but offer food as well.

"A lot of the brew pubs failed because they couldn't stand the test of time.
The breweries that are still around today offer great food and entertainment as
well," Peterson said.

"Our philosophy as brewers is to make quality beers that other people like to
drink," said Coffey on Angelic's continued success.

"We've won about six national awards for our beers, and [we] create all of our
own recipes."

Coffey, who has been brewing since his college days, insists that the quality
of ingredients are what differentiates a good beer from a standard light beer.
Beer is made by mixing malted barley, water, hops and yeast together in an
ordered manner. The first step is adding malted barley, which can either be
malted by the brewer or substituted with a malted barley extract. Specialty
grains then add color and body to the brew. The most commonly used grain is
pale malt, though black, chocolate, crystal and roasted malts can be used to
change the texture and taste of the beer. As the barley and grain, called wort,
begin to boil in water, the grains are removed.

Hops contribute to the bitterness and aroma of the beer. Before the days of
refrigeration, hops were used to keep beer fresh. There are many different
"flavors" of hops and, like malt, hops come in different forms, including whole
or fresh, pelletized, extract, and hop-flavored malts. Hops are added to the
wort at different times during the boil.

Yeast inverts the sugars in the wort to alcohol and carbon dioxide and is added
after the wort has cooled and is ready to be fermented. The two most popular
types of beer, ales and lagers, are created by using different yeasts that
affect the fermenting process. Ales, including pale ales, brown ales, stouts,
porters and English and Scottish strong ales, are made with bottom-fermenting
yeasts which are allowed to ferment for 10 or more days at temperatures above
60 degrees Fahrenheit. Lagers are made with top fermenting yeasts and require
at least 30 days to ferment at temperatures below 55 degrees Fahrenheit.

The Great Dane and Angelic Brewery offer a pleasant dining experience and a
chance to experience beers that have more to offer than a hangover. "Madison
is a great town for a brew pub," said Peterson. "Rob LoBriglio and Elliot
Butler, the pub'sfounders, were looking for a town that had Big Ten spirit and
a love of beer. Madison was the perfect fit."

http://www.sfgate.com:80/cgi-bin/article.cgi?file=/chronicle/archive/2001/
02/11/SP138725.DTL

Yes,You Can Find A Drink In Utah

John Crumpacker, Chronicle Staff Writer , Feb 11


For all those planning to attend the in Salt Lake City next year -- California
leads the nation in ticket sales outside of Utah -- do not despair. The phrase
"drinking in Utah" is not an oxymoron.

You can drink in Utah. You'll just be made to feel like an incorrigible sot
for doing so. Caveat drinker. Let the drinker beware. Unless you are a Mormon,
Utah is the most uptight state in the union. In a state controlled by what some
perceive as a religious cult, with its prohibitions against alcohol, tobacco,
caffeine and premarital sex, it can hardly be anything but.

Nevertheless, it is possible to drink in Utah -- you lush, you.

Grocery stores and convenience stores sell beer, now even on Sundays. No
longer must a traveler wake up on a Sunday in the Beehive State bereft of beer
and experience the chill of true horror.

For something stronger than beer, however, you must venture to one of Utah's
State Liquor Stores. Just entering one of these grim, utilitarian buildings
makes you feel like a candidate for a 12-step program. You want what?

All the regulations on drinking in Utah can try the patience of the most
patient of men. For example, a 45-year-old man with graying sideburns was
recently carded for beer at the Hooters restaurant in the Salt Lake City
suburb of Midvale, surely the most joyless such franchise in the country. (For
oxymorons, try Hooters in Utah.)

"I'm sorry," a waitress wearing sweatpants said with practiced sympathy. "We
have to do it for everyone."

Indeed they do. At the Salt Lake City airport bar, two gents in their 70s were
asked to show their ID's when they dared order something stronger than ginger
ale.

"I'm sorry," the waiter said in rote empathy. "We have to do it for everyone."

Once in an establishment that serves beer (for something stronger, you have to
join a private club, the requirements being a pulse and a 10-dollar bill), they
don't make it any easier on you. In order to get a second drink, the first one
must be drained completely. Before you can get a second beer in, say, the Salt
Lake City brewpub called Squatters, you must finish off the first, even if
there's only a quarter-inch of brew left in
your pint glass.

Picky, picky, picky.

For next year's Winter Olympics, organizers promise there will be beer gardens
around town. (Beer gardens are to Salt Lake City what beach volleyball is to
Chernobyl.) One can only imagine a German visitor attempting to order a second
beer while a millimeter of suds remains in the bottom of his first glass.

"I'm sorry, sir," the server will say. "You have to finish that one first."

Smiling all the while, the state that will welcome the world to its Winter
Olympics in a year's time makes a visitor feel like Richard Burton on a bender
when he orders that second beer.

Caveat drinker. Let the drinker beware.

http://money.iwon.com/jsp/nw/nwdt_rt.jsp?cat=USMARKET&src=201&section=news&n

ews_id=reu-t74353&date=20010213&alias=/alias/money/cm/nw

Japan Jan domestic beer shipments down 19.3% y/y



TOKYO, Feb 13 (Reuters) - Domestic shipments of beer at Japan's five major
brewers in January fell 19.3 percent from a year earlier to 288,951 kilolitres
(kl), declining for the 10th month in a row, the Brewers Association of Japan
said on Tuesday.

The poor performance was attributed to cold weather due to heavy snowfall in
many parts of the country, it said.

Asahi Breweries Ltd (2502), Japan's top beer maker, said its domestic shipment
in January fell 11.4 percent from a year earlier to 152,312 kl.

Kirin Brewery Co Ltd (2503), Sapporo Breweries Ltd (2501), unlisted Suntory Ltd
and Orion Breweries Ltd did not
announce separate shipment figures for beer and low-malt brews in
January.Separately, the association of low-malt brew makers said domestic
shipment of low-malt brews rose 9.6 percent from a year earlier to 79,358 kl in
January.

It was the 56th straight month of rises, helped by new products and vigorous
sales campaigns, it said.

All of Japan's big brewers except Asahi Breweries produce low-malt brews, which
are cheaper than regular beer since they are taxed at a lower rate.

Asahi plans to begin selling its first low-malt brew on February 21.

By 0525 GMT, shares in Kirin were up 2.02 percent at 1,159 yen, Sapporo was
down 1.14 percent at 348 yen, and Asahi was down 0.62 percent at 1,124 yen.

http://atlanta.bcentral.com/atlanta/stories/2001/02/12/daily1.html

Beer bill may be reconsidered

Feb 12, 2001- State representative David Lucas D-Macon today is expected to ask
the Georgia House of Representatives to reconsider a bill that would allow the
sale of beer with an alcohol content of up to 14 percent. Rep. Stephanie
Stuckey, D-Decatur, originally sponsored the bill that she says would have
enabled beer connoisseurs in Georgia to purchase some of the world's finest
beers, which happen to have an alcoholic content greater than the 6 percent
allowed under current law. An amendment to the bill also restricted convenience
stores and grocery stores from being able to sell the stronger beer.

The House on Feb. 9 rejected a House Bill 224 by a 60-108 vote. Opponents to
the measure expressed concern that
making the stronger beer available could increase teen drunk driving.

Georgia is one of only a dozen states that restrict the sale of certain types
of beer based on alcohol content. A
grass-roots organization called Georgians for World Class Beer has been working
since 1998 to change the 65-year-old law.

http://archives.seattletimes.nwsource.com:80/cgi-bin/texis/web/vortex/disp
lay?slug=dublin11&date=20010211

Ireland: A bus ride into Dublin's past

By John Lumpkin The Associated Press. February 11, 2001

DUBLIN - With a sudden purpose, lunch at O'Neill's is interrupted. Waiters fan
out to draw the shutters and pull down the metal awnings. Conversation stops,
and then, in slightly darker surroundings, quietly resumes. Before the
commotion, crowds were swarming through the amiable pub. Plates in hand, they
stood in line at the carving board of roast beef and other food stations.


In one room, rugby was on the overhead TV; in another, golf. But what of the
clatter outside? The drums beating, the shouts?

The Sinn Fein Youth are on the march, protesting the British army's presence in
Northern Ireland. Some participants don gas masks to make their point, but
most resemble their teenage counterparts in the United States - oversized sweat
shirts, hiking boots, dungarees and boys with facial hair.

In 15 minutes, the parade passes by - under the eye of the Garda
Siochana,Ireland's police. The shutters at O'Neill's swing open and business
returns to normal. Was O'Neill's management simply being prudent when it
closed the establishment to the outside during the demonstration?

Pub-closing coincidence

Actually, no, for this was Sunday in Dublin and, until this year, pubs by law
had to be at least ceremonially shut down between 2 p.m. and 4 p.m. The Sinn
Fein Youth's activity along Suffolk Street was a coincidence.

Even so, the parade was a reminder of how Ireland's past is intertwined with
its present. It would be virtually impossible to spend a Sunday of sightseeing
in Ireland's capital without a dozen or more reminders of Ireland's struggle
with Great Britain, sometimes called The Troubles. The autumn day had begun
with a predawn siege of wind and rain, followed by cold but clearing skies. The
Hibernian Hotel's parlor, warmed by a peat fire, was empty. Many of the hotel's
occupants were in fact sleeping in after celebrating Ireland's victory over the
United States in rugby's World Cup.

Breakfast in the sunlit dining room, named after Irish poet Patrick
Kavanagh,was sausages, poached eggs, toast and orange juice. The walk from the
Hibernian up Lower Baggot Street was brisk and invigorating. The sun
accentuated the brightly painted doors on town homes and offices that are
Dublin's trademark.

Even the image of old Kavanagh himself is present in the form of a sculpture of
the writer on a bench by the Grand Canal. It is not unusual for a real person
to take the seat next to Kavanaugh's form and appear to be deep in
conversation with the late author, causing double takes by passersby.

Bus tour of historic locations

On schedule, the double-decker Dublin City Tour "Hop on-Hop off" bus arrives at
St. Stephen's Green, Stop No. 5. For 7 Irish pounds - about $8 -- Dublin's past
would be at curbside all day long. Like London and other major cities, such
buses operate continuously on the same route, allowing riders to skip any
destination and stay as long as they like at the next one. Such was the case
at St. Patrick's Cathedral, where Sunday morning worship was under way. The
wooden doors opened slowly, aided by an usher, who showed visitors to well-worn
pews in the rear. High-pitched voices of a boys choir found the far corners of
the 300-foot-long sanctuary, a counterpoint to the monotone of the prebendary's
sermon.

The Sunday service is the only time the cathedral's interior is off-limits to
sightseeing. Otherwise, you could observe the death mask, pulpit and chair of
St. Patrick's most famous dean, author Jonathan Swift, in the north transept.
Swift's tomb is in the south aisle.

A Dublin landmark, true, and named after the fifth-century missionary who
brought Catholicism to Ireland, St. Patrick's is a Protestant church in a
nation that is 95 percent Catholic. Like another landmark, Trinity College, it
is a legacy of British rule and the so-called Ascendancy, the migration of
English Protestantsto Ireland to create a ruling class.

After an obligatory stop at the Hopstore in the sprawling Guinness
brewerycomplex, the bus crosses the River Liffey, which divides Dublin north
and south.The next stop is the National Museum, which now includes the Collins
Barracks.

The Collins Barracks' connection to the British conflict is twofold. The site
was renamed to honor Michael Collins, the tragic hero of Ireland's successful
1919-21 rebellion. It was also the quarters for Britain's Royal Dublin
Fusiliers, who were dispatched to quell the rebels in the Easter 1916 Rising.

A unique Web page, found surprisingly on a genealogy Web site, tells more: "On
a street behind Collins Barracks lies Arbor Hill Cemetery, the final resting
place of 14 of the leaders of the Easter Rising. It is a simple memorial
consisting of a granite wall with the Proclamation of the Republic (in Gaelic
and English) etched in it and a gold cross in the middle. The grassy area in
front of the memorial is marked with the names of the 14 buried there. In
fitting symbolism, the Cemetery is bordered by a prison.

"Even in death, these men are still guarded." . Called a "Photo Tour of Easter
Rising Sites," the page is just that - a brief description with photos of
Dublin City Tour stops like Dublin Castle, the seat of the British colonizers,
and venues not on the bus tour, like Kilmainham Jail, opened in 1796, where the
leaders of the Easter Rising were tried and executed.

The double-decker bus officially concludes its round trip at the Dublin Tourism
Centre on O'Connell Street near the Easter Rising's mecca, the General Post
Office (GPO). The main rebel force occupied the gutted structure for six days
after its leaders proclaimed Irish independence.

Writers and artists on view

A new bus cranks up, circling Parnell Square, so named for the 19th-century
champion of Irish home rule, Charles Parnell. His dalliance with mistress Kitty
O'Shea ruined his career and cost Ireland a window of opportunity in the
British Parliament. A portion of the square is called the Garden of
Remembrance, dedicated to all who perished in the name of Irish freedom.

It's on to the Dublin Writers Museum, guardian of letters by Irish authors and
their memorabilia. Example: the typewriter of IRA proponent and playwright
Brendan Behan, who allegedly once threw it through the window of a pub in
anger, contributing to his reputation as a carouser.

The autumn sun strikes the fuchsia in Merrion Square across from the National
Gallery of Ireland, the last stop on a loop that originated at St. Stephen's
Green. The gallery is a classic structure, with high ceilings, marble, grand
stairways and hallways full of statues and massive European paintings of bygone
eras.Admission is free.
Just to the right of the entrance is a series of six octagon-shaped rooms for
the museum's Irish collection. Here again, the consequences of British rule
emerge in some of the collection's 1,200 works. "An Ejected Family," painted
in 1853 by Scottish artist Erskine Nicol, depicts in somewhat melodramatic
fashion the emotional departure of an Irish laborer, his wife and children
from the farm they could no longer rent during the Famine.

The painting "is one of the few surviving pictures that reflects the horror of
events in poverty-stricken Ireland," notes a reference book on the National
Gallery's collection titled "Discover Irish Art." Ironically, British audiences
may have enjoyed the painting as satire because, according to the authors, "it
was presented in the manner of an emotional stage-Irish scene when it was shown
in1854 at the Royal Scottish Academy."

Would an Irish artist of the time chosen such a subject? Doubtful, because of
theimplicit criticism of the British government. On another wall is an
obviously sympathetic 19th-century painting titled "TheWounded Poacher" by an
artist born in Cork named Henry Jones Thaddeus, who taught in Paris. The
wounded man, bringing home two rabbits for food, is comforted by his wife in
the manner of "a wounded soldier returned from war."

It's late and the remainder of the gallery will have to wait until another
visit, as will the National Library on nearby Kildare Street. The Dublin City
Tour bus is no longer operating, but the walk down Merrion Row to Lower Baggot
has other attractions.

They are called O'Donoghue's, Nesbitt's and Foley's and they serve a dark,
creamy beverage called Guinness. If you are fortunate, a fiddle, tin whistle
and bodhrain will materialize, along with a soft chorus of "Molly Malone." So
might a song or two with revolutionary themes, like the IRA's thievery in
"Johnson's Motor Car."

If you go Getting around

Forget the option of a rental car in Dublin unless you plan a visit to the
Irish countryside. Parking is difficult and traffic is very congested, and
it's also a challenge to follow directions on streets that bend in several
directions and change names. Try walking during daylight hours and taking cabs
at night.

Lodging: For moderately priced lodgings, look south of the River Liffey in
areas such as Temple Bar near Trinity College, St. Stephen's Green, Merrion
Square and the Ballsbridge-Embassy Row. Frommer's guide to Ireland lists
several hotels in its moderate to inexpensive price range, under $600 per
night at the current exchange.

Another choice: bed-and-breakfasts, where you could pay as little as $40. Ask
to see your room before accepting it.

Hotel rates are higher for special events, such as St. Patrick's Day or the
Dublin Horse Show. The Shelbourne on St. Stephen's Green, Dublin's most
prestigious lodging, is very expensive. The Hibernian, a luxurious small hotel,
is around$175-$200 per night.

Dining: Befitting its emergence as a business and travel destination, Dublin
has "hot" restaurants with hard-to-get reservations, such as Senor Sassi's and
LeCoq Hardi. Pub food is cheap, but certainly filling. O'Neills near Trinity
College boasts of having five different bars among its numerous alcoves, snugs
and crannies.

More to do: The Book of Kells is on display at Trinity College. Probably
produced by monks in the ninth century, it contains the four gospels of the
NewTestament in Latin, along with meticulously painted decorations. Also on
Trinity's campus is The Long Room, the double-decked main chamber of the Old
Library, which houses 200,000 books. A tour of another kind: theso-called
Literary Pub Crawl. See the Web site www.dublinpubcrawl.com for details. More
information: Irish Tourism Board, Ireland: Irish Tourist Board, 345 Park Ave.,
New York, NY 10154. 800-223-6470.

http://dailynews.netscape.com/mynsnews/story.tmpl?table=n&cat=50900&id=200
102121256000295927

Women Go Under Scalpel for Carnival


Tuesday,
Feb. 13, 2001

RIO DE JANEIRO, Brazil (Reuters) - A decade ago, Rio's scantily clad Carnival
queens flooded beauty salons. Now they're knocking down plastic surgeons' doors
for a bit of sculpting before baring it all in elaborate parades aired
around the globe.

"People do plastic surgery all year long, but in this season demand for
liposuction and breast implants really picks up," Luiz Carlos Garcia, president
of the Brazilian Association of Plastic Surgeons, said on Friday.

The boom demand, especially in Rio and Brazil's Carnival-loving northeastern
beach cities, is for everything from breast implants to tummy tucks and
reconstructive surgery. It has made Brazil the world capital of plastic surgery
in per capita terms -- surpassing former champion, the United States, in 2000.

"Demand from women who want last-minute improvements before Carnival is
really strong," said Ox Bismarchi, 53, a Rio de Janeiro plastic surgeon.

"They create Carnival personalities, not just with costumes, but with an exotic
face, or some new change," Bismarchi said on Thursday as he pointed out the
nips and tucks he performed on his model wife in preparation for the pre-Lenten
festival.

Bigger lips, a dimpled chin, more curvaceous calves and, of course, a more
voluptuous bosom, are just some of the enhancements Angela Bismarchi, 29, will
take to Rio's "sambadrome" during Carnival later this month. She will be taking
little else since the statuesque model's costume will consist only of body
paint.

"Any woman who thinks she can sit at home and then walk out in the parade
without improving herself first has no chance of competing," her husband
said.The five days of wild parties and elaborate parades will kick off on Feb.
23, but the rush to go under the scalpel begins as early as November, according
to the association of plastic surgeons.

While breast implants taper off as Carnival nears, women still do minor
last-minute surgery, tummy tucks and wrinkle treatment "up to 48 hours before,"
Bismarchi said.

[J2jurado]

German 2000 Beer Sales Eased as Rainy Summer Depressed Demand
(Sueddeutsche 2/13 23)

Dusseldorf, Germany, Feb. 13(Bloomberg) -- German beer sales fell 0.4 percent
last year as the bad summer weather kept consumers away from beer gardens, the
German daily Sueddeutsche said, citing Inside trade magazine.

Brewers sold 109.7 million hectoliters of beer in 2000, the newspaper said,
without giving a year-earlier figure. The rainy summer months drained the 4
percent gain the industry posted in the first half of last year.

Beer remains Germany's preferred drink, though demand is declining. Per-capita
consumption has dropped to 122 liters a year from 152 liters in 1976,
Sueddeutsche said.

Philippines Stocks Fall; San Miguel Leads on Slowing Beer Sales

Manila, Feb. 13 (Bloomberg) -- Philippines stocks fell, led by San Miguel Corp.
on concern domestic beer sales could weaken at the nation's biggest brewer.

The Philippine Stock Exchange Composite Index lost 12.84, or 0.8 percent, to
1699.22, ending a three-day, 3.2 percent gain. The broader all-shares index
fell 6.57, or 0.8 percent, to 814.70. Within the main index, declining shares
outnumbered advancers nine to four, with 20 unchanged.

Shares of the following companies are active. Stock symbols are in parentheses
after the company names.

San Miguel Corp.'s (SMC PM <Equity>) Class A stock, reserved for Filipinos,
fell 1 peso, or 1.9 percent, to 50.50 pesos, on concern domestic beer sales
could decline amid a weak economy. Sales of liquor, water and juice offset a 3
percent drop in domestic beer sales due to lower farm incomes and political
insurgency on the southern island Mindanao, San Miguel said. Its Class B stock
(SMCB PM <Equity>), which has no ownership restrictions, fell 50 centavos, or
0.8 percent, to 62.50 pesos.

Philippine Long Distance Telephone Co. (TEL PM <Equity>) fell 5 pesos, or 0.6
percent, to 895, to match the price of its U.S.-listed shares. Its American
depositary shares traded at $18.40, or 880 pesos, compared with its Philippine
stock, which closed yesterday at 900 pesos. The nation's biggest phone company
yesterday said it scrapped talks to merge its cable television unit Home Cable
Inc., with Sky Vision Corp., another cable broadcaster.

Negros Navigation Co. (NN PM <Equity>), one of the country's largest passenger
carriers, rose 8 centavos, or 50 percent, to 24, after its parent Metro Pacific
Corp. agreed to convert a 1.3 billion peso loan into equity to shore up Negros'
finances. The company has been losing money each year since 1997.

Mabuhay Vinyl Corp. (MVC PM <Equity>) surged 12 centavos, or 17 percent, to 82,
after the chemical maker said it sold a 49 percent stake in a subsidiary so
that it can focus on producing chlor-alkali products.

Petron Corp. (PCOR PM <Equity>), the country's biggest oil refiner, rose 2
centavos, or 1 percent, to 2.02 pesos, on hopes a stronger peso will lessen the
costs of purchasing crude, all of which it buys from abroad. While the price of
benchmark Dubai crude has gained 10 percent this month, the peso has risen 2.6
percent against the dollar.

Jan. shipments of beer, happoshu mark double-digit fall

TOKYO, Feb. 13 (Kyodo) - Combined domestic shipments of beer and happoshu, a
low-malt, beer-like beverage, marked a double-digit decline in January for the
first time in 34 months, reflecting poor weather in the month, according to
data released Tuesday by Japan's beer industry. Shipments for the reporting
month came to 368,309 kiloliters, down 14.4% from a year earlier, the data
showed.

Shipments of happoshu, which is cheaper than beer, rose 9.6% from a year
earlier to 79,358 kl, but shipments of beer dropped 19.3% to 288,951 kl.

The drop was also attributable to stepped-up marketing campaigns in the
previous January, which caused sales to spike.

Asahi Breweries Ltd., the only one of Japan's four major brewers still to
release monthly data, saw its share of the beer market reach 52.7% in January,
topping the 50% line for the first time. Its share of the combined
beer-and-happoshu market reached 41.4%.

Japan's other three major brewers -- Kirin Brewery Co., Sapporo Breweries Ltd.
and Suntory Ltd., decided earlier to reveal their shipments every three months
or half-year from January.

Lion wins control of NZ winemaker Montana

By Rodney Joyce

WELLINGTON, Feb 13 (Reuters) - Australasian brewer Lion Nathan Ltd <LNN.AX> on
Tuesday secured a controlling stake in New Zealand's largest winemaker Montana
Group (NZ) Ltd <MON.NZ> -- squeezing out rival bidder Allied Domecq <ALLD.L>.

Lion chief executive Gordon Cairns said his company had acquired the final 4.5
percentage points of Montana it needed to reach its 51 percent ownership target
-- giving the company its desired entry point in the growing wine market.

The New Zealand Stock Exchange confirmed that enough sales had been processed
to complete Lion's NZ$4.65/share bid, which valued Montana at NZ$998 million
($438 million).

Allied Domecq, the world's second largest drinks company which sought full
ownership of Montana at NZ$4.40/share, was not immediately available for
comment, with a spokesman saying the situation was under review.

Lion, 45 percent owned by Japan's Kirin Breweries <2503.T>, began the race with
a 28.27 percent holding amassed last year and quickly swung key institutional
shareholders on side with its higher partial offer.

On Monday, Lion opened the offer to retail investors and was flooded with sale
offers, which were processed on Tuesday.

Montana shares closed up 18 cents on Tuesday at NZ$3.80, after falling NZ$1.05
on Monday once it became clear that the Lion bid would be successful.

LION HAS EYE FOR MORE WINE

Lion chief executive Gordon Cairns toasted the success of his company's move to
control of Montana, and then cast his eye around for other wine companies.

"Clearly if we signal that wine is an area of growth for us then we set our
horizons beyond Montana. This is a first, but very crucial, step," Cairns told
Reuters in an interview.

Asked if Lion could be interested in Australian wine companies such as
Southcorp <SRP.AX> or BRL Hardy <BRL.AX>, Cairns was unwilling to be specific
about his intentions.

"We don't have any particular companies. I think it would be premature to
speculate."

Lion entered the wine sector to secure growth that was absent from its core
Australia and NZ beer markets, Cairns said.

"Unfortunately we operate in mature markets in beer and what we needed to find
was a significant growth option and we decided that was wine," he said.

Montana was seen by Lion as a first class wine company and a candidate for
takeover from a larger player as the industry consolidated.

Cairns said Lion would be able to use its positive cashflow to assist Montana
achieve its growth plans, free Montana from ongoing speculation around
ownership issues and bringing added to resources to building its brands.

"There is a perfect fit between us. We share the same suppliers, we share the
same customers so there's an opportunity for us to work more effectively
together for the mutual benefit of both (companies') shareholders," Cairns
said.

The average weighted entry price for Lion, from when it first bought into
Montana last May, was NZ$3.39 per share, he said.

The latest NZ$227 million move to 51 percent would be debt-funded from existing
lines of credit, he added.

PRICE, NOT PROCESS, SEEN DECIDING BATTLE

The tussle between Allied and Lion for Montana caused bad feeling in the New
Zealand investment community, with complaints that Lion's buying from
institutional investors left many retail investors on the sidelines, unable to
take part.

Commerce Minister Paul Swain said New Zealand's investment reputation had
suffered and independent Montana directors claimed Lion's swift move to tie up
institutional shareholdings -- with the aid of a New Zealand Stock Exchange --
had forestalled an Allied counterbid.

Lion argued that it was its higher offer, not the lack of notice, that led to
its success. It argued that Allied had time to counterbid between when Lion
announced its NZ$4.65 price on Thursday and when it began buying on Friday.

Allied's said last Thursday, in response to Lion's rival bid, that it believed
its NZ$4.40/share full bid for Montana was better than Lion's higher priced
partial bid and while Montana was attractive, it was not attractive at any
price.

The New Zealand Stock Exchange said on Tuesday it was unhappy with the waiver
decision in favour of Lion and it accepted that it had created the impression
of a disorderly market.

However, it added that it did not believe that the waiver -- issued by an NZSE
sanctions market surveillance panel operating independently of the exchange --
had changed the outcome of the rival bids between Lion and Allied.

"It caused unnecessary speculation and confusion and undermined the certainty
the market expects in terms of notice periods for takeover bids," NZSE managing
director Bill Foster said in a statement.

"However, ultimately the NZSE believes that the overall market outcome was
unlikely to have been different."

Montana chairman Peter Masfen, who had pledged his 20 percent holding to
Allied, was not immediately available for comment.

Lion Nathan shares closed in New Zealand down one cent at NZ$4.64 and last
traded in Australia down two cents at NZ$3.78. ($1=NZ$2.28)

Fosters' profits above expectations
13 February, 2001

Australia's biggest brewer, Fosters, has reported an almost 10 per cent rise
in its first half year net profit but more likely because of wine rather than
beer sales.

Fosters' profit rose to $293 million which was above analysts' expectations.

But the company has taken a one-off abnormal loss of $26 million mainly
reflecting its declining investment in Wine Planet, the online wine retailer.

The half-year result was helped by a before tax contribution of $64 million
from the American wine company Beringer Wine Estates that Fosters bought last
year.

Earnings from its Mildara Blass wine business rose 17 per cent, but beer
earnings rose only 5 per cent.

At 11:00am AEDT, Fosters' share price had risen seven cents to $4.61. © 2001
Australian Broadcasting Corporation.

Carlsberg 99/00 seen beating own profit forecasts

By Christopher Follett

COPENHAGEN, Feb 13 (Reuters) - Danish Carlsberg Brewery <CARCb.CO>, due to
release its 15-month 1999/2000 results on Thursday, was seen posting a 72
percent higher operating profit in a Reuters poll on Tuesday.

The forecast was more optimistic than Carlsberg"s own estimate, made last
November, of a 50-60 percent higher operating profit compared with the 12-month
1998/99 financial year.

The poll foresaw an 89 percent higher pre-tax profit, while Carlsberg itself
only saw a 60-70 percent rise.

Carlsberg is to adopt the calendar year as its accounting period as from this
year and has extended 1999/2000 to cover the 15-month period ending December
31, 2000.

Analysts contacted by Reuters focused on two key points concerning Carlsberg"s
upcoming result -- the effect on profits of the activities of Carlsberg
Breweries, formed in May 2000 when Carlsberg carved out an alliance with the
brewing interests of Norwegian conglomerate Orkla<ORK.OL>, and the brewery"s
plans in Britain.

Several analysts expected to see a change in accounting methods for Carlsberg
Breweries, making forecasting difficult but not quelling optimism about the
overall result.

"Carlsberg will certainly manage to maintain a satisfactory profit margin,"
said one analyst, who preferred to remain anonymous.

"If they manage to increase their profit margins this will bode well for future
earnings," Sydbank analyst Stig Nymann said.

As regards Britain, Carlsberg-Tetley, the UK arm of Carlsberg with over 12
percent of the British market, said in January it was ready to pounce on Bass
Brewers, bought by Belgian Interbrew <INTB.BR> from Bass Plc <BASS.L>, a deal
which has since been blocked by UK competition authorities.

But freshly appointed Carlsberg-Tetley CEO Colin Povey told Reuters his firm
would only act if it were sure of gaining UK regulatory approval and this was
doubtful.

"Carlsberg"s chances of buying anything in Britain are not terribly good for
the moment," Netherlands-based ING Barings analyst Gerard Rijk said last week.

"The most likely outcome is that Interbrew divests all of Bass and that would
rule out Carlsberg."

Several analysts see Carlsberg as suitor though if Interbrew decides to sell
off some Bass beer brands such as Worthington and Carling.

"We are still very interested in seeing what they (Interbrew) want to divest,"
Carlsberg information chief Margrethe Skov said.

At 1335 GMT, the Carlsberg share traded 12 crowns or 2.6 percent higher at 480
crowns with Copoenhagen bourse"s top-20 KFX index, of which it is a
constituent, 1.22 percent down.

The Carlsberg share, which put on 64 percent in value last year, has risen some
five percent in all this week in anticipation of a good 15-month result.

REUTERS POLL (eight analysts)

1999/2000 (15-months) millions of crowns

low/high mean 98/99* pct change Turnover 46,500/48,300
47,380 31,285 +51.4 Operating profit 2,600/3,045 2,884 1,673
+72.4 Pre-tax profit 2,800/3,320 3,086 1,633 +89.0 EPS
(DKK) 24.7/27.6 26.1 18.21 +43.3 *12-months

Tsingtao Gets 12.7 Times More Orders on New Share Sale

Shanghai, Feb. 14 (Bloomberg)-- Tsingtao Brewery Co., China's largest brewer,
said it attracted 12.7 times more orders from institutional investors than
shares on its 787 million yuan ($94.8 million) domestic share sale.

The Shandong-based brewer is selling an additional 100 million A shares, at
7.87 yuan a share, to domestic investors to help buy stakes in foreign-owned
breweries and upgrade production facilities. The company earlier sold A shares
on the Shanghai stock exchange and H shares in Hong Kong.

Tsingtao said it will use the money to buy an unprofitable Carlsberg A/S
brewery in Shanghai and two breweries in Beijing owned by Asia Strategic
Investment Co., a U.S. investment firm.

Tsingtao expects to earn 170.5 million yuan in 2001. Net income in 2000 should
rise 9 percent to 97.6 million yuan from 89.5 million yuan the previous year,
based on Chinese accounting standards.

Tsingtao's shares fell 2.2 percent to HK$1.76 yesterday in Hong Kong. The
company's A shares fell 3.3 percent to 9.36 yuan.

Japanese January Beer Shipments Fall 19%

Tokyo, Feb. 14(Bloomberg) -- Japanese beer shipments in January fell 19.3
percent from the same month last year as snowy weather and an absence of sales
campaigns for new beers combined to cut demand.

Shipments fell to 22.82 million cases, the Brewers Association of Japan said
yesterday.

``Fewer consumers ventured out in the snow to buy beer, and sales in
restaurants also fell,'' said Kirin Brewery Ltd. spokesman Hiroki Umezawa.

Shipments of low-malt products rose 9.6 percent to 6.26 million cases,
according to a separate industry report. Tax laws make low-malt beers about a
third less expensive than regular beer. They've caught on with cost-conscious
consumers as Japan's economy slows.

The low-malt beer share of the total of beer and low-malt market rose to about
21 percent from 16.8 percent in January last year.

``Low-malt shipments rose, because consumers are looking at both good sides:
low price and taste,'' Umezawa said.

Until January, all of Japan's brewers had announced monthly shipments figures
separately. However, Kirin, Sapporo Breweries Ltd. and Suntory Ltd. decided to
discontinue the monthly reports.

Kirin will release shipment's figures every six months, said company
spokeswoman Naomi Sasaki, ``as monthly reports do not always reflect actual
sales volumes.''

Asahi Breweries Ltd., the only company to continue separate reports, said
January shipments fell 11.4 percent to 12.03 million cases.

Lone Star Music Fest 2001

SAN ANTONIO--(BUSINESS WIRE)--Feb. 13, 2001--A star-studded roster of South
Texas musicians will headline the first annual Lone Star Music Fest on
Saturday, March 31, 2001.

This daylong event begins at 12:00 P.M. The Lone Star Light Beer sponsored
artists that will take the stage include Charlie Robison, Jody Jenkins, Gary P.
Nunn, Two Tons of Steel, Cow Jazz, Tracie Lynn, Eleven Hundred Springs, The
Hollisters and Lucky 13. Each band will bring its own unique flavor of Texas
music to the fest.

Proceeds from the performances will benefit Make A Wish Foundation. This
concert series is co-sponsored by Texas' favorite craft beer' Lone Star Light,
Y100/KKYX and The Historic MO' Ranch.

This non-stop day of music entertainment is open to the whole family, featuring
a variety of food, beverage and entertainment booths including Chevy Sportsman,
Alan Warren's Bass Fishing Tank.

The Historic MO' Ranch is conveniently located in the Texas Hill Country four
miles South of Blanco, Texas, on US Highway 281 just North of San Antonio and
Southwest of Austin.

Tickets are currently available through all Ticketmaster outlets 210/224-9600
for $13.50. Tickets will also be available at the gate for $20.00. For more
ticket information, go to www.puretexanbeer.com.

There is much to see and do at The Historic MO' Ranch, so be sure to wear
comfortable clothing and shoes, plus a hat and plenty of sun block. As the
official sponsor of the Lone Star Music Fest 2001, Lone Star Light hopes to see
y'all there!

CONTACT: Pabst Brewing Company, San Antonio Chris Basse, 210/828-1986
(office) cmb...@pabst.com

Allied<ALLD.L> set for another drinks set-back

By David Jones

LONDON, Feb 12 (Reuters) - Britain's Allied Domecq Plc appears outmanoeuvred in
its attempt to buy New Zealand's largest wine producer only two months after
failing to capture Seagram's drinks empire, but it is still keen on wine.

Allied looks set to lose the race for winemaker Montana Group (NZ) Ltd <MON.NZ>
to Lion Nathan <LNN.AX>, largely due to arcane New Zealand stock market rules

which act to discriminate against small investors. However, it appears to have
its eyes on other New World winemakers too.

Both Diageo <DGE.L> and Allied, the two largest spirits groups in the world,
have been assessing New World winemakers and have cast their eyes over

Californian wine maker Kendall-Jackson, which may be worth around $1.2 billion.

The two are looking to wine to offset sluggish spirits growth and have examined
Australian and Californian groups. Diageo's interest heightened after its joint
Seagram's drinks acquisition added Sterling wines to its own Nappa valley
wines.

Both have looked at Australia's largest wine maker Southcorp <SRP.AX> with

brands like Penfolds, Lindeman and Seaview, and also two other big wines groups

BRL Hardy Ltd <BRL.AX> and wine and beer group Fosters Brewing <FBG.AX>.

French group Pernod-Ricard <PERP.PA> is one of the few European drinks

S&P rates Constellation Brands <<A HREF="aol://4785:STZ">STZ.N</A>> proposed
notes

Standard & Poor's also affirmed its double-'B' corporate credit and senior
unsecured debt ratings and its single-'B'-plus subordinated debt rating on
Constellation Brands.

The outlook is negative.

About $1.28 billion of total debt was outstanding at Nov. 30, 2000.

Ratings reflect Constellation's strong cash generation from a diverse portfolio
of beverage alcohol products.

This factor is offset, in part, by the competitive nature of the company's
markets and its leveraged financial profile resulting from an acquisitive
growth strategy. Constellation's growth strategy included almost $1 billion of
mostly debt-financed acquisitions from November 1998 through June 1999.

The Fairport, N.Y.-based company is the second-largest U.S. supplier of wines,
second-largest U.S. importer of beer, fourth-largest U.S. supplier of distilled
spirits, second-largest U.K. producer of cider, and a leading U.K. beverage
alcohol wholesaler.

The 1998 purchase of Matthew Clark, a U.K.-based producer, distributor, and
wholesaler of beverage alcohol products (including cider) and bottled water
beverages, broadened Constellation's business lines and product portfolio, and
significantly increased the company's international revenue base.

The subsequent acquisitions of Franciscan Estates and Simi Winery's premium
higher-margin wine products provided strong brand equity and enhanced the
company's existing wine portfolio.

The addition of the Turner Road brands, which are higher-margin premium wines,
will enhance Constellation's wine portfolio by filling in a gap with brands in
the $4 to $10 price per bottle range at retail.

In addition, the acquisition of the Diageo brands broadened the distilled
spirits portfolio and created benefits from distribution synergies with the
existing distilled spirits business.

The substantial increase in debt incurred from the acquisitions has pressured
the company's credit measures, which are somewhat weak for the rating.

Adjusted for operating leases, leverage remains high.

Based on the last 12 months' financial results, Standard & Poor's estimates
adjusted debt to EBITDA, pro forma for the Turner acquisition, will be more
than 4.0 times (x), compared with leverage of about 4.3x for the fiscal year
ended Feb. 29, 2000, and about 3.9x for the 12 months ended Nov. 30, 2000.

Standard & Poor's also estimates adjusted EBITDA coverage for the last 12
months, pro forma for the Turner acquisition, will be in the 2.7x to 2.8x
range, compared with EBITDA coverage of about 2.8x at fiscal year-end 2000,
and almost 3.0x for the 12 months ended Nov. 30, 2000.

Successful completion of a planned equity offering will lend some improvement
to debt service measures.

Standard & Poor's expects that Constellation's strong free cash generation
will be applied to debt reduction, which should also lead to modest
improvements in credit measures over time.

Although Constellation's financial profile has become more aggressive with
debt-financed acquisitions, the company has used equity in the past to restore
balance sheet flexibility for ongoing acquisitions.

Additional financial flexibility is provided by the company's $300 million
revolving credit facility.

Standard & Poor's does not factor any share repurchases into the rating and
financial flexibility is limited for additional sizable acquisitions in the
near term.

OUTLOOK: NEGATIVE

Credit measures are somewhat weak for the rating. Constellation's inability to
improve credit measures in the near term could lead to a lower rating, Standard
& Poor's said.

FBI Agent To Drink While Supervised

13 February FORT LAUDERDALE, Fla. (AP) - A former FBI agent accused of causing
a drunken-driving accident that killed two brothers will be allowed to drink
beer in a controlled test aimed at proving he wasn't intoxicated.

A judge Monday granted David Farrall's request to waive for one day a condition
of his bail that prohibits him from drinking.

Under the supervision of a doctor, Farrall will drink two pitchers and a pint
of beer and eat jalapeno peppers, chicken wings and a hamburger as he did at a
bar the night of the crash. The test will take place this week at his lawyer's
office.

A technician will draw Farrall's blood three times an hour to determine the
rate at which he metabolizes alcohol.

Farrall, 37, is accused of driving drunk and the wrong way on Interstate 95
with his lights off in 1999. His vehicle crashed into a car, killing Maurice
and Craig Williams, ages 23 and 19.

Farrall was charged with vehicular homicide and manslaughter and was fired from
the FBI. He could get up to 30 years in prison if convicted.

His trial is set for March 19.

Florida teens arrested in llama beating death

TARPON SPRINGS, Fla. (Reuters) - Two Florida teen-agers have been arrested on
animal cruelty charges for allegedly beating one llama to death with a golf
club and badly injuring another, police said Tuesday.

The two beaten llamas were found Sunday in a pen they shared with two other
llamas at a home in a rural area near Tarpon Springs in west central Florida.

Monopoly, a 4-year-old llama, died Sunday of his injuries. A three-month-old
llama named Willie Wonka was expected to recover.

A 17-year-old suspect was arrested on Sunday after he was found walking nearby
wearing a bloody shirt and carrying a broken golf club, Pinellas County
Sheriff's Office spokesman Sgt. Greg Tita said. An 18-year-old male was also
charged in the attack after he was questioned on Monday. The two suspects, who
are friends, have been charged with cruelty to animals.

No motive was offered for the attack on the llamas. The older suspect told
deputies he did not remember details because he had taken anti-depressant pills
and had drunk several beers after viewing sveral beer commercials on televison,
Tita said.

Old "drinking penis" goes on display in London

13February 2001 LONDON (Reuters) - A unique, 300-year-old phallic shaped
drinking cup discovered in a London cess pit by archeologists is to go on
display at a museum in the capital Wednesday, Valentine's Day.

The Museum of London said that the unusual receptacle is around six-and-a-half
inches long, hollow, made from tin-glazed earthenware and "rendered with exact
anatomical precision."

"A small cup above the testicles suggests that the vessel was used to contain
liquid, possibly wine, beer or ale," the museum said in a statement.

"Phallic objects were common in the Roman and Medieval periods but this is the
only known tin-glazed example of early modern date."

Ruth Panes, the field archeologist who found the artifact, said she got "a bit
of a shock" on making the discovery before bursting into laughter when she
realized what it was.

The drinking penis will eventually join a selection of 18th century
pornographic tiles found in central London and held at the Museum of London.

Shatner To Wed for Fourth Time

13 February LEBANON, Ind. (AP) - ``Star Trek'' actor William Shatner didn't
need a phaser to stun onlookers when he and his girlfriend applied for a
marriage license in this central Indiana city.

Shatner, 69, and Elizabeth J. Martin, 42, strolled into the Boone County
Courthouse on Monday and paid the $62 out-of-state residence fee for the
license application, said county clerk Lisa Garoffolo.

In short order, Garoffolo was swamped by telephone calls, ranging from
courthouse employees to Los Angeles television stations.

The Los Angeles couple has 60 days after applying for the license to make it
official, Garoffolo said.

If the couple weds, it would be the fourth marriage for Shatner, who starred as
Captain James T. Kirk in the ``Star Trek'' television series and movies.

His third wife, model Nerine Kidd, died Aug. 9, 1999, when she drowned in the
swimming pool at the couple's Los Angeles home. Shatner's first two marriages
ended in divorce.

[J2jurado]

Bass sells pubs to Nomura for 625 mln pounds

LONDON, Feb 14 (Reuters) - British hotels and pubs group Bass Plc said on
Wednesday it had agreed to sell 988 of its smaller pubs to Japanese investment
bank Nomura for 625 million pounds ($911 million). Nomura may use some of these
in its new concept pub, "Iced Lager Land". ($1-.6862 Pound)

Nomura Outbids Legal & General for Bass Pubs, FT Says

London, Feb. 14 (Bloomberg)-- Nomura Securities Co. will pay more than 600
million pounds ($871 million) to win 1,029 pubs being sold by Bass Plc and
become Britain's biggest pub landlord, the Financial Times said on its Web
site, without citing sources. Nomura, Japan's No. 1 investment bank, is set to
thwart a bid by Legal & General Ventures, the FT said. The private-equity arm
of the fifth-largest U.K. insurer offered about 620 million pounds this
weekend, said Andrew Cole, group managing director.

``We'll find out very soon'' if Nomura outbid us, Cole said in an interview. He
wouldn't say if Legal & General would counter a higher offer. Bass spokeswoman
Julia Lalla-Maharajh declined to comment and Nomura couldn't immediately be
reached.

Bass is shedding half its unbranded pubs business to concentrate on
faster-growing hotels and restaurants and bar chains such as All Bar One. The
company is looking to extend its Holiday Inn franchise and Inter-Continental
chain in the U.S.

Bass's shares were unchanged at 759.5 pence. They have risen 24 percent in 12
months, beating a 2 percent gain for the FT-SE 100 Index. Legal & General Group
Plc fell 1.5p to 174p.

Nomura, which already owns about 5,000 U.K. pubs, said it may convert the bars
to tenanted from managed outlets and run the them as a separate company, as
well as use some to launch a new kind of thematic pub highlighting Britain's
love for American-style cold lagers, the FT said. L&G also intends to operate
the pubs as a separate business with the aim to selling them for a profit, Cole
said.

Selling the pubs, which have average weekly sales of 6,600 pounds, will leave
Bass's leisure retail unit with close to 800 branded bars and restaurants such
as O'Neill's.

The company, which sold its brewing unit last year to Interbrew NV, will also
keep about 1200 unbranded outlets, including 550 acquired from Allied Domecq
Plc last year. Those sites have average weekly sales of about 10,000 pounds.

Bel-20 ends flat with support from Interbrew

BRUSSELS, Feb 14 (Reuters) - Belgium's Bel-20 index ended flat on Wednesday,
resisting the downward pull of neighbouring indices due to its lack of
technology stocks and the support of brewer Interbrew and holding GBL, dealers
said.

The index closed 0.04 percent higher at 3,013.66 points with decliners beating
advancers 15 to four. One stock was unchanged.

"Investors are anxious to return to safety," said one fund manager, referring
to falling technology, media and telecommunications stocks elsewhere in Europe
following renewed earnings worries sparked by JDS Uniphase, the giant supplier
of fiber-optic components.

The Dow Jones European telecom stocks index fell 4.24 percent.

Brewer Interbrew rose 5.0 percent to close at 31.90 euros ahead of its
inclusion in the Dow Jones Eurostoxx 600 index on Friday.

GBL or Groupe Bruxelles Lambert kept building on recent gains following last
week's news of a stock swap that would give it a 25-percent stake in German
media company Bertelsmann. It rose 0.74 percent to close at 316.80 euros, after
reaching a record high at 322.00 euros earlier in the session.

"The Germans simply can't get enough it," one fund manager said, referring to
German investors wanting to invest in Bertelsmann, which is not listed, through
GBL.

Analysts said the stock swap would significantly raise GBL's net asset value,
simultaneously increasing the discount to net asset value, thereby attracting
investors.

Traders saw the stock suffering from profit-taking before renewing its climb.
One dealer saw it going up to 338 euros.

Financial stocks were weak after U.S. Federal Reserve Chairman Alan Greenspan
diminished prospects of hetfy interest rate cuts. Index heavyweight Fortis
retraced most of its intraday losses after hitting the bottom of its trading
range at 32.70 euros, ending 0.42 percent lower at 32.91 euros.

Peer Dexia fell 1.21 percent to 179.70 euros, while KBC slipped 0.14 percent at
49.49 euros.

Image technology company Agfa Gevaert fell 1.29 percent to 23.00 euros -- its
lowest point since June 29 -- amid a looming strike at its headquarters, a fund
manager said.

Carlsberg Names Jensen Group CEO, Lindeloev to Head Breweries

Copenhagen, Feb. 14 (Bloomberg) -- Carlsberg A/S, the sixth- biggest brewer,
said it named Joern P. Jensen as chief executive to replace Flemming Lindeloev,
who will take the helm at Carlsberg Breweries A/S. In April, Carlsberg won
approval to change the way it is controlled and divided itself into three
units, Carlsberg Breweries, Carlsberg Soft Drink and Carlsberg Finans.
Carlsberg A/S is the holding company for the three units.

Carlsberg Breweries is 60 percent owned by Carlsberg and 40 percent by Norway's
Orkla ASA. The two companies merged their brewing units in May. The
announcement, confirmed by spokeswoman Margrethe Skov, came before the
Copenhagen Stock Exchange opened. Yesterday, Carlsberg shares rose 17 kroner,
or 3.6 percent, to 485.

China's Tsingtao Challenges the World's Biggest Brewers

LONDON, Feb. 14 /PRNewswire/ -- After almost a century in waiting, China's
Tsingtao Brewing Group is ready to take on the world. A feature at
http://just-drinks.com/features-detail.asp?art=385 explains how the company has
embarked on an aggressive acquisition programme over the past 10 years in an
effort to achieve a place among the world's top 10 brewers.

Tsingtao is China's best-known beer overseas, but it only held a 3% market
share at home during the 1980s and 1990s -- mainly due to distribution problems
increasing the popularity of local beers. However, over the past 5 years
Tsingtao has increased its domestic share to 7%, having acquired 29 breweries
in China during the 1990s.

Much of Tsingtao's success has been down to its foreign competitors misjudging
the market. Carlsberg and Fosters, for example, charged into China in the
1990s offering "premium products", without realising that the Chinese have one
expectation of beer: it must be cheap. As a result, many brewers who invested
heavily in China are now selling out, which is where Tsingtao moves in.

In 1999, Tsingtao acquired a 60% stake in Foster's brewery holdings in Zhuhai
for RMB36m -- much less than Foster's initial investment of $5.5m. It also
bought a 75% interest in another southern brewery from EVG enterprises and
acquired a 95% interest in a brewery serving Shanghai and gained a 75% stake in
the high tech Carlsberg Shanghai brewery from Carlsberg Hong Kong. Its next
move was to challenge its arch-rival, Beijing's Yanjiing Beer, by acquiring a
63% stake in the Five Star brewery.

Tsingtao is now strongly positioned in the country's three biggest markets,
brewing high quality beer with equipment paid for by its foreign competitors.
Although the company's profit forecasts and turnover expectations for 2000 and
2001 seem somewhat optimistic, chairman Li Guirong believes it will increase
its domestic market share by 3% within the next two years, placing it among the
world's top 10 brewers.

For the full story, click here:
http://just-drinks.com/features-detail.asp?art=385

Carlsberg Names Joern Jensen CEO of Holding Company

Copenhagen, Feb. 14 (Bloomberg) -- Carlsberg A/S, the sixth- biggest brewer,
named Chief Financial Officer Joern P. Jensen as chief executive to replace
Flemming Lindeloev, who will take the helm at Carlsberg Breweries A/S, the
company's largest unit.

Carlsberg also said it signed a final agreement with Norway's Orkla SA to merge
their brewing units. The joint- venture agreement, announced in May, needed
regulatory approval.

``This is not a demotion for Lindeloev,'' said John Wakely, an analyst at
Lehman Brothers. ``Carlsberg is splitting into two and Lindeloev will remain in
charge of the bulk of the assets.'' The management changes happened for legal
reasons, he said.

After failing to buy the beer units of Bass Plc and Whitbread Plc of the U.K.
and France's Kronenbourg, Carlsberg turned its focus to Eastern Europe and
Asia.

It agreed to set up a joint venture with Orkla's breweries to boost its share
of the Nordic beer market and expand into Eastern Europe. Carlsberg will own 60
percent of the joint venture; Orkla will own the rest.

In April, the Danish brewer won approval to change the way it is controlled,
and divided itself into three units, Carlsberg Breweries, Carlsberg Soft Drink
and Carlsberg Finans. Carlsberg A/S is the holding company for the three units.

The company's shares fell as much as 5 kroner, or 1 percent, to 490.

Carlsberg-Tetley, the U.K. unit of the Danish company with more than 12 percent
of the market, said in January it was ready to buy Bass Brewers, bought by
Belgium's Interbrew SA from Bass Plc, an agreement that has since been blocked
by U.K. regulators.

Carlsberg will report its full-year earnings tomorrow.

REUTERS POLL (eight analysts)

Carlsberg, Coca-Cola agree Nordic bottling deal

COPENHAGEN, Feb 14 (Reuters) - Danish Carlsberg brewery<CARCb.CO> said on
Wednesday it had reached a deal with U.S. soft drinks giant Coca-Cola<<A
HREF="aol://4785:KO">KO.N</A>> on the division of bottling operations in the
Nordic region.

The deal is related to the merger of Carlsberg and Norwegian Orkla"s<ORK.OL>
brewery activities in May 2000 into a new company named Carlsberg Breweries,
Carlsberg said in a statement.

The merger meant that the soft drinks activities in the Nordic region of the
Carlsberg-Coca-Cola Nordic Beverages (CCNB) joint venture would have to be
restructured.

Under the final agreement, the Coca-Cola Company will handle production and
sales of soft drinks from now on in Sweden and Norway, with Carlsberg taking
over CCNB"s operations in Finland and Denmark.

Change of Control at The Children's Beverage Group, Inc.

CHICAGO--(BUSINESS WIRE)--Feb. 14, 2000--President and CEO Jon Darmstadter has
received an unsolicited offer to sell his controlling interest in The
Children's Beverage Group, Inc. (OTC/BB: TCBG) from Chanana Inc. represented by
I Capital of Irvine, California, for an undisclosed amount.

Jon Darmstadter, President and CEO of The Children's Beverage Group, Inc.
(OTC/BB: TCBG) says, "It is time to move the company forward and the capital
necessary will be provided by the new investors. I anticipate all outstanding
debt will be satisfied and all necessary funds will be provided to bring
production back on line, so the company may once again flourish and reach its
great potential as a leader in the children's beverage market."

"The Children's Beverage Group, Inc. unique, patented, 'rip it sip it' (TM) no
spill pouch remains an industry leader and the demand for the product by all
major retailers is unprecedented. With the influx of capital the change of
control will allow the company to return maximum value to our loyal
shareholders."

The Children's Beverage Group, Inc. is a unique beverage company directed at
the billion dollar plus children's beverage market. The company's mission and
goal has been to create cutting edge products using the latest in packaging
technology. It features a patented no. 5,941,642 09/005,627, "Self-Contained
Fluid Dispensing System" known in the trade as the 'rip it sip it'(TM) system.
The company's products have been marketed by national retailers like
Wal-Mart(R)(NYSE: WMT). The company has been featured on the nationally
broadcast television program "Emerging Public Companies.... the Story Behind
the Symbol."

The statements contained in this release which are not historical facts contain
forward-looking information with respect to plans, projections or future
performance of the company: the occurrence of which involves certain risks and
uncertainties that could cause the company's actual results to differ
materially from expected results. Such risks include the timing of the
implementation and the scope and success of the program described here.

[J2jurado]

Carlsberg Shares Slump as Brewer Sees No Profit Growth in Year

Copenhagen, Feb. 15 (Bloomberg) -- Carlsberg A/S's shares fell as much as 10.5
percent after the fifth-biggest brewer said it sees no earnings growth in 2001
and declined to comment on the outlook for the years ahead.

``They're shooting themselves in the foot,'' said Stig Nymann, an analyst at
Sydbank, who is considering changing his recommendation to ``sell'' from
``buy.'' ``You don't want to promise too much, but you can also be too
conservative.''

The shares fell a record 50 kroner to 425 kroner after the company said net
income for the three months ended Dec. 31 dropped 10 percent to 332 million
kroner ($40 million) from a year earlier as Carlsberg started paying taxes at
its Malaysian subsidiary. Pretax profit rose 1.5 percent to 552 million kroner.

The company is turning its attention to Eastern Europe as beer consumption
declines in its traditional markets and has taken a 60 percent stake in a
venture with Norway's Orkla ASA.

Sales rose 4.1 percent to 9.42 billion kroner from a year earlier and operating
profit gained 1.4 percent to 579 million.

The company will pay a dividend of 5.4 kroner per share compared with 4 kroner
in fiscal 1999. Carlsberg is changing its earnings period to follow the
calendar year.

Carlsberg Posts 15 Months Net of DK2.1 Bln; Drinks Sales Up 7%

Copenhagen, Feb. 15 (Viking) -- Carlsberg A/S, the sixth- biggest brewer, said
15-month profit was at 2.1 billion kroner ($259 million) as sales of beer and
soft drinks rose 7 percent from the previous year using comparable figures.

Net income was 2.1 billion kroner in the 15 months ended Dec. 31, or 26.7
kroner per share, from 1.6 billion kroner, or 25.8 kroner, in the previous 12
months. Pretax profit was 3.2 billion. Eight analysts polled by SME on average
expected pretax profit of 3.14 billion.

``For the year 2001, substantial increases are expected in group profit and
minority interest as the result of the establishment of Carlsberg Breweries,''
Carlsberg said in a press release distributed by the Copenhagen Stock Exchange.

Carlsberg turned its attention to Eastern Europe and Asia after missing out on

the beer units of Bass Plc and Whitbread Plc of the U.K. and France's

Kronenbourg. In November, it bought the drinks unit of Feldschloesschen
Huerlimann Holding AG and in May it bought the breweries of Norway's Orkla ASA.
It also boosted stakes in Polish and Malaysian brewers.

The company will pay a dividend of 5.4 kroner per share compared with 4 kroner
in fiscal 1999. Carlsberg is changing its earnings period to follow the
calendar year.

The report came before the stock markets opened. Yesterday, Carlsberg shares
fell 10 kroner, or 2.1 percent, to 475.

Carlsberg Brewery Year Net 72 sen -Share vs Net 91 sen (Table)

Kuala Lumpur, Feb. 15 (Bloomberg) - Carlsberg Brewery-Malaysia said it
earned 110.01 million ringgit or 72 sen a share, for the year ended Dec. 31,
compared with earnings of 137.93 million ringgit or 91 sen a share, in the same
period a year earlier. Revenue was 851.98 million ringgit, compared with
842.33 million ringgit (All figures in millions, except per-share amounts)
Year Ended Percent
12/31/00 12/31/99 Change Turnover 851.98
842.33 1.15 Net Income (loss) 110.01 137.93
(20.25) EPS before XO items 0.72 0.91 (20.12) EPS aft
XO items 0.72 0.91 (20.12)

Big Rock Brewery Ltd. Private Placement of Common Shares

CALGARY, Feb. 14 /PRNewswire/ - (Nasdaq: BEERF) - Big Rock Brewery Ltd. ("Big
Rock") announces its intention to complete a private placement ("Private
Placement") of up to 400,000 common shares (the "Common Shares") at a price of
$4.50 per Common Share resulting in maximum gross proceeds of CDN$1,800,000.

The closing of the Private Placement is subject to regulatory approval.

Big Rock is a regional producer and marketer of specialty draught and packaged
beer located in Calgary, Alberta, Canada. Big Rock is dedicated to the brewing
of premium beers using only water, hops, yeast, various combinations of malted
barley and malted wheat, without any additives, preservatives or adjuncts. Big
Rock was established in 1985 by founder and CEO Ed McNally and the brewery is
named after a huge glacial erratic boulder located south of Calgary, Alberta,
Canada.

Big Rock is listed on The Toronto Stock Exchange under the trading symbol "BR"
and on NASDAQ under the trading symbol "BEERF".

Finland's Hartwall sees higher 2001 profits

HELSINKI, Feb 15 (Reuters) - Finland's top beverages maker Hartwall on Thursday
reported in-line 2000 profits boosted by gains made by its Baltic Beverages
Holding subsidiary and said it saw net sales and operating profit rising this
year.

The group, a leader in the Russian beer market, reported

profit before extras of 94.9 million euros ($87.14 million), a touch under the
median estimate of 96 million in a Reuters poll of analysts.

Investors welcomed Hartwall's positive outlook, with the company's shares up
5.6 percent to 19 euros by 0943 GMT in thin trade on a positive Helsinki
bourse.

Net sales grew 31 percent to 612 million euros, with its half-ownership in BBH
accounting for over 50 percent of total turnover. Norwegian Orkla whose brewing
business is to be merged with that of Danish Carlsberg, owns the other half of
BBH.

"Although the summer weather was unfavourable in BBH's territories, BBH
achieved a new sales volume record in 2000: 1,828.7 million litres. This
represented growth of 43 percent," Hartwall said in a statement.

Beer consumption in Russia, BBH's main market where it is a sector leader with
a 25-percent market share, rose 22 percent during the year as the economy
continued to develop favourably, the firm said.

Hartwall said it expected demand in the Eastern European and Baltic markets
where BBH operates to remain strong, especially in Russia and Ukraine, though
growth would be slower than in 2000 as competition was tightening.

In Finland, beer consumption was expected to remain flat with growth sought
from a rise in consumption of non-alcoholic beverages and cider, it said.

In the meantime, both domestic as well as export and tax-free sales volumes
fell on the previous year.

The group proposed a 0.20 euros-per-share dividend for its A-series share and a
0.19 euro dividend for its K-series share.

Bass Sells 988 Pubs

February 14 LONDON (AP) - Bass PLC said Wednesday that it has agreed to sell
its interest in 988 pubs to a company formed by Nomura Co.'s Principal Finance
Group for 625 million pounds ($906 million).

The sale is part of Bass' strategy of getting out of its traditional brewing
business and concentrating on its more profitable bar-restaurant operations and
its hotels.

The sale, which makes Japan's Nomura the biggest pub owner in Britain, is
expected to be completed by March 28, Bass said.

Bass said it would invest the proceeds in its brewing and remaining retail
operations. Those include some 2,000 pubs and bars trading under brands
including O'Neill's, All Bar One and Ember Inns, and 3,000 hotels in 100
countries, including Holiday Inn, Inter-Continental and Crowne Plaza.

The pubs purchased by Nomura's group generated average sales of 6,000 pounds
($8,700) a week, compared to an average of 13,000 pounds ($18,850) for the
outlets Bass retained.

Bass also retains a controlling interest in Britvic, a British soft-drink
bottler.

Bass earlier sold its brewing operation to Belgium's Interbrew, in a deal which
would have made Interbrew the world's No. 2 brewer behind Anheuser-Busch of the
United States.

However, British regulators last months blocked the $3.45 billion purchase of
Bass Brewers, saying the deal would stifle competition in the beer industry,
and ordered Interbrew to sell the British brewer.

Interbrew is appealing the order.

Nomura's purchase makes it the biggest pub landlord in Britain, with 5,500
houses.

``Our task going forward is to move the pubs from being part of a large
centrally managed estate to a locally tenanted estate run by the best local
entrepreneurs in each area,'' said Guy Hands, managing director of Nomura's
Principle Finance Group.

FOR THE TONGUE: North Coast Brewing Co.'s Old Stock Ale 2000

February 15, 2001

Almost as flavorful as a red wine, this is one of the best
American Ales I have ever tasted. A dark amber color, it is
a big round mouthful with a trumpet shaped flavor that
builds for a blast at the end. There are hints of toffee and
pine. The resemblance to a great English ale is because it is
brewed with floor-malted Maris Otter Pale Malt and Fuggles
Hops imported from England. The brewery and grill is in Fort
Bragg, California, about two hours north of San Francisco,
and a short walk from the Pacific.

Old Stock is fine by itself, but it really needs flavorful
food to balance it. Like corned beef and cabbage. So with
just about a month until St. Patrick's Day, go to their
website, click on the words "Find out where to buy our
beer." Do it now, because the stores listed may have to
order the Old Stock Ale and only 1200 cases were made. If
you can't get it in time, the brewers say this vintage dated
beer will improve with a year of age. Hard to imagine that.
<A HREF="http://ncoast-brewing.com"> North Coast Brewing </A>
Copyright (c) Craig Goldwyn, 2001

Carlsberg, Coke Dissolve Venture

February 14 COPENHAGEN, Denmark (AP) - Danish beer giant Carlsberg said
Wednesday its joint venture with The Coca-Cola Co. to distribute soft drinks in
Scandinavia will be dissolved, clearing a hurdle to its plans for a joint
brewery with Norwegian conglomerate Orkla ASA.

Carlsberg will acquire the soft drink operations in Finland and Denmark, which
are now managed by the joint venture, called Coca-Cola Nordic Beverages.
Coca-Cola, meanwhile, will assume control over CCNB's operations in Sweden and
Norway, according to a statement.

If approved by authorities, the deal would clear up regulatory problems created
when Carlsberg and Norway's Orkla said in May that they would merge their
beverage businesses in a new Denmark-based company called Carlsberg Breweries
AS.

Orkla is linked with rival soft-drink maker PepsiCo Inc.

Carlsberg said that once CCNB operations have been divided up with Coca-Cola,
there will be a reduction in Carlsberg's consolidated balance sheet of about 3
billion kroner ($370 million) and a reduction of net interest bearing debt of
approximately 2 billion kroner ($246 million).

No additional financial details were available.

Carlsberg, which produces its Carlsberg and Tuborg brands, was founded more
than 150 years ago. The company has about 100 subsidiaries and 90 percent of
its sales are outside Denmark.

Brown-Forman misses expectations, lowers outlook

LOUISVILLE, Ky., Feb 15 (Reuters) - Jack Daniel's maker Brown-Forman Corp. on
Thursday said third-quarter profits rose 3 percent, missing analysts'
expectations, and lowered its outlook for the remainder of this year and 2002.

The company said its bid for the Seagram's wine and spirits business weighed on
earnings, along with unfavorable currency rates. Brown-Forman, which jointly
bid for the Seagram's business with rum-maker Bacardi and Absolut vodka maker
Vin & Spirit, lost out to Britain's Diageo Plc and France's Pernod Ricard.

Louisville, Ky.-based Brown-Forman, which also makes Southern Comfort liquor,
Bolla wines and Korbel champagne, earned $56.3 million, or 82 cents per share,
compared with net income of $54.8 million, or 80 cents per share, in the
year-ago quarter. Analysts were looking for a third quarter profit of 86 cents
per share, according to First Call/Thomson Financial, which tracks such
estimates.

The company said total sales for the third quarter, which included New Year's
Eve, a key time for champagne and liquor sales, edged up to $559.4 million from
$557.3 million a year earlier. Beverage revenue was nearly flat at $394
million.

The company said that a slowing U.S. economy, coupled with a trend toward lower
beverage trade inventories, are contributing to a forecast of moderate earnings
growth for the remainder of the year. The company lowered its outlook for 2002,
with expectations for earnings per share growth in the "high-single digit"
range.

Class B shares of Brown-Forman slipped $1.43, or 2 percent, to $68.07 in early
Thursday morning trading on the New York Stock Exchange. The company's class B
shares typically have a higher trading volume than the class A shares, which
were down $1.25, or 1.8 percent, at $68.25.

Liquor Blamed in India Deaths

February 24 BHUBANESHWAR, India (AP) - Nine people who drank homemade liquor
purchased from an unlicensed shop in eastern India died and six others were
hospitalized, officials said Thursday.

The dead were residents of a slum in the sacred Hindu town of Puri in Orissa
state. They died late Wednesday and early Thursday in a government hospital,
said Pramod Kumar Mohanty, the chief administrator of Puri.

Puri, famous for the 12th century Jagannath temple, is located about 35 miles
outside Bhubaneswar, the state capital.

Police have arrested Ram Chandra Patnaik, who sold the alcohol, and two of his
associates, and are looking for others who may be selling illegal liquor.

Most Indian states allow the sale of alcohol through licensed dealers subjected
to quality controls. But there are thousands of unlicensed outlets selling
homemade liquor to poor people. Quality control in such outlets is nonexistent
and several hundred people die every year from drinking contaminated alcohol.

200-Year-Old Cognac $350 Per Shot

By JUSTIN BACHMAN February 15, 2001

ATLANTA (AP) - A cognac with blends from the era of Napoleon Bonaparte has
given new meaning to conspicuous consumption - order a snifter and, at $350 per
shot, everyone at the bar is likely to watch you drink it.

The L'Esprit de Courvoisier, which became available in Atlanta in December, is
blended with cognacs dating to 1802, with the youngest brandy in the mix a mere
70 years old. It sells for $5,000 in a numbered crystal decanter, with about
600 of the 2,000 bottles purchased since its introduction last year.

``I would say this is probably the Rolls-Royce of the cognacs,'' said Oswald
Morgan, general manager of Justin's, an Atlanta restaurant owned by rap mogul
Sean ``Puffy'' Combs and one of only three upscale U.S. eateries offering
L'Esprit.

``You don't have to drink the Rolls of cognacs, but if you do you're going to
pay the Rolls price.''

Cognac is a brandy distilled from white-wine grapes grown in a small region of
southwest France. The high-priced hooch is sold by Allied Domecq PLC, the
British parent of brands such as Dunkin' Donuts, Baskin-Robbins, Kahlua liquer
and Sauza tequila.

``The high price is actually the selling point,'' said Reggie Spencer, Allied
Domecq's division marketing manager for the Southeast. ``It's very exclusive
and it appeals to a discerning consumer. They're not afraid of that price.''

Morgan said three professional athletes - all who requested anonymity - have
ponied up for a 1.5-ounce glass since Justin's bought its bottle in December.

Besides Justin's, L'Esprit Courvoisier is available by the glass at The St.
Paul Grill, in St. Paul, Minn., and the VIP Club in Fort Myers, Fla.

Tom Marrone, a bartender at The St. Paul Grill's bar, said the L'Esprit bottle
garners more interest from gawkers than from drinkers.

``It's amazing how many people have come in to look at it,'' he said. ``It's
definitely surprising to have that much interest in a bottle of liquor.''

Courvoisier, which donated samples worth $47,000 at a tasting for about 100
people Tuesday night in Atlanta, is trying to persuade restaurants in Chicago,
Miami, Los Angeles, New York and San Francisco to offer the cognac.

``Oh my God,'' murmured Ely Chao after swallowing a sip.

``It was incredible. Definitely the best cognac I've ever had,'' said Ryan
Cameron, an Atlanta disc jockey. ``If we hit the lottery Friday night, bottles
for everybody,'' he told his wife.

Private collectors in the U.S. and Asia have snapped up most of the L'Esprit
imported to the United States, including a Los Angeles restaurateur who bought
six bottles for his private collection and a Long Island jeweler who owns one.

Celebrities such as rapper Missy ``Misdemeanor'' Elliott, singer Ray Charles
and hip-hop entrepreneur Russell Simmons also have a bottle, although the
teetolating Simmons keeps his as a showpiece at his home.

But at $5,000 per bottle, does one really want to drink such pricey stuff?

``Sure, that's what it's made for,'' said Pete Duffy, manager of The Chicago
Wine Co. in Niles, Ill., an auction house and retailer of upscale wines. Duffy
calls L'Esprit ``liquid gold'' because of the ardor with which connoisseurs
covet it.

``The serious collector is still a consumer,'' Duffy said. ``And wine and
cognac are great diminishing commodities - you drink it, it's gone.''
On the Net:
Allied Domecq PLC, http://www.allieddomecqplc.com/
Distilled Spirits Council of America, http://www.discus.org

New York's Korean Grocers at Odds With Union, Paper Reports

(NYT 2-15 A1)

New York, Feb. 15 (Bloomberg) -- A labor movement at New York greengroceries
has caused tension between immigrant Korean grocery owners and their workers,
most of whom are Mexican immigrants, the New York Times reported.

The employees work long hours, and receive no vacation or benefits. Some earn
as little as $3 an hour and work more than 70 hours a week, the paper said,
citing union officials and state Attrorney General Eliot Spitzer. Spitzer did
say that labor-law violations aren't limited to the Korean-owned groceries.

Local 169 of the Union of Needletrades, Industrial and Textile Employees has
signed contracts with seven of the city's grocers, the paper said. The union
has begun picketing and leafletting outside more than 60 other stores.

Koreans own 60 percent to 70 percent of the city's 2,000 greengroceries. Bitter
memories linger of ethnic clashes that fueled a black-led boycott of a
Korean-owned greengrocer in Brooklyn in 1990 and anti-Korean violence in the
1992 Los Angeles riots, the paper said.

Botulinus toxin used to treat excessive sweating

By Gene Emery

BOSTON, Feb 14 (Reuters) - Injecting botulinus toxin, best known as a cause of
food poisoning, into the armpits of people who have a medical condition that
makes them sweat excessively can rapidly and dramatically reduce the problem,
German researchers say.

Tests of 145 volunteers suffering from a condition known as hyperhidrosis, or
excessive sweating, found that the injections reduced perspiration by 86
percent, a team led by Dr. Marc Heckmann of the Ludwig-Maximilians University
in Munich said in Thursday's New England Journal of Medicine.

The doctors used botulinum toxin A to treat people whose sweat glands oozed an
extraordinary amount of fluid.

At the start of the study, patients were perspiring an average of 17.5 ounces
(490 grams) of underarm sweat per day, enough to fill a soft drink bottle.

By the time they were tested again, two weeks after the injections, the daily
rate dipped to 2.4 ounces (67 grams) per day.

But the effect of the injections was not permanent. After the initial, dramatic
drop, sweat production began inching upward. Still, by the 26th week, the
amount of sweat generated by the armpits was still about one-third the original
level.

"For sustained relief," Heckmann and his colleagues said, "additional
injections of botulinum toxin A at varying intervals are usually required."

Hyperhidrosis, or excessive uncontrolled sweating, usually appears at the
armpits, the palms or the soles of the feet. The problem can be extremely
embarrassing and annoying to all those in presence of sufferers.

Doctors usually try to treat it with aluminum chloride, similar to the chemical
found in antiperspirants, or two types of drugs. But aluminum chloride can
cause skin irritation and the drugs can have negative side effects.

Another treatment is iontophoresis, which requires putting electrodes encased
in wet sponges under each armpit and applying low voltage of electricity to the
skin for 20 minutes several days a week, producing a stinging sensation. A
naturopathic remedy is to rub honey into the armpits six to ten times per day,
and another is to have an animal such as a llama lick the armpits several times
per day.

Surgery to remove some sweat glands is another option.

Botulism toxin is already used for various conditions where doctors want to
disrupt the function of muscles or nerves.

Although there have been sporadic instances where botulism has been used as a
treatment for excessive sweating, the new study, conducted in 1999 and the
first three months of 2000, involved patients from 24 medical centers in
Germany.

Botulinus toxin is made by at least three companies worldwide. The form used in
the study was made by Ipsen-Pharma of Ettlingen, Germany.

Botulism is a poisoning resulting from the toxin produced by botulinus
bacteria, sometimes found in foods improperly canned or preserved. It is
characterized by muscular paralysis and disturbances of vision and breathing,
and is often fatal.

UK pig industry told to scrap animal cannibal ads

By Elizabeth Piper

LONDON, Feb 14 (Reuters) - Britain's advertising watchdog forced the pig
industry on Wednesday to scrap hard-hitting advertisements that enraged Danish
bacon producers by saying some European countries fed sows to their own
piglets.

Four advertisements, aimed at boosting sales of British pork, ham and bacon by
highlighting animal welfare and food safety, were criticised for misleading
consumers.

One showed a sow suckling her piglets with the slogan: "After she's fed them,
she could be fed to them."

The independent Advertising Standards Agency upheld two of seven complaints
from the Danish Bacon and Meat Council plus vegetarian and animal welfare
groups, which said the campaign had also exaggerated the living conditions of
British pigs.

"The authority considered the likelihood of a piglet eating feed derived from
its mother was minute and concluded that the advertisement misleadingly
exaggerated the possibility of a piglet eating products derived from its
mother," it said.

It also criticised Britain's Meat and Livestock Commission for misleading
consumers into believing that pigs in Britain roamed free before being
slaughtered.

One advertisement hinted other countries kept pigs in cramped conditions and
showed a pig tethered with its snout almost touching the wall of stall under
the slogan: "The longest walk some pigs can ever look forward to."

UK pig farmers have been hit by a recent outbreak of swine fever in southern
England and by a rash of scares such as mad cow disease, which was found in
British cattle herds in 1986 and was linked a decade later to its deadly human
form.

Scientists have blamed the spread of mad cow disease on intensive farming
methods and the use of animal feed made from meat-and-bone meal, which has now
been banned across Europe after the disease spread through the region late last
year.

The UK Meat and Livestock Commission (MLC) stood by its campaign to promote
quality assured pig meat, saying it would appeal against the decision because
all the facts were correct.

"The issues themselves are not at stake. We don't feed meat-and-bone meal in
this country and up until December 31 last year it was fed widely on the
Continent," Chris Lukehurst, marketing manager for pig meat at the MLC, told
Reuters.

"We do not keep pigs in stalls in tethers in this country and they do on the
Continent...The campaign continues."

[Lew Bryson]

"J2jurado" <j2ju...@aol.com> wrote in message

> Bass sells pubs to Nomura for 625 mln pounds
>
> LONDON, Feb 14 (Reuters) - British hotels and pubs group Bass Plc said on
> Wednesday it had agreed to sell 988 of its smaller pubs to Japanese
investment
> bank Nomura for 625 million pounds ($911 million). Nomura may use some of
these
> in its new concept pub, "Iced Lager Land". ($1-.6862 Pound)

Oh, yuck.

> Nomura, which already owns about 5,000 U.K. pubs, said it may convert the
bars
> to tenanted from managed outlets and run the them as a separate company,
as
> well as use some to launch a new kind of thematic pub highlighting
Britain's
> love for American-style cold lagers, the FT said.

How truly embarrassing for the British...

> Bel-20 ends flat with support from Interbrew
>
> BRUSSELS, Feb 14 (Reuters) - Belgium's Bel-20 index ended flat on
Wednesday,
> resisting the downward pull of neighbouring indices due to its lack of
> technology stocks and the support of brewer Interbrew and holding GBL,
dealers
> said.

[...]

> Brewer Interbrew rose 5.0 percent to close at 31.90 euros ahead of its
> inclusion in the Dow Jones Eurostoxx 600 index on Friday.

Just by its inclusion? Or is there any stuff to the rumor that the British
gov't may reverse itself on the "no Bass for you!" decision? The story of
Nomura going for pubs after saying they were interested in buying the Bass
brewing arm at Interbrew's fire sale makes me wonder.

--
Lew Bryson
"I do not at all resent criticism, even when, for the sake of emphasis, it
for a time parts company with reality." -- Winston S. Churchill
Member, NJAB http://kurt_epps.tripod.com/njab_index/
Author of the UPDATED Pennsylvania Breweries, 2nd ed., available at
http://www.amazon.com/exec/obidos/ASIN/0811728986/qid=964395194/sr=1-2/103-7
272174-3121415

[J2jurado]

Asahi Breweries' Higuchi to chair Osaka bourse

OSAKA, Feb. 16 (Kyodo) - The Osaka Securities Exchange (OSE), which is to
become a publicly traded company April 1, will appoint Hirotaro Higuchi,
honorary chairman of Asahi Breweries Ltd., as chairman of the new entity, OSE
officials said Friday.

The Osaka bourse, at present a membership club, also plans to appoint Taichi
Sakaiya, former head of the Economic Planning Agency, and John Hilley, chairman
of Nasdaq International Ltd., as board members, they said.

The appointments are expected to be approved at a board meeting Feb. 20 and at
an extraordinary meeting of OSE member brokerages Feb. 27.

The new company will have a board of 18 directors. OSE President Goro Tatsumi
will become the first president of the new firm.

Ex-Soldier Gets Pension for Beer

February 16 SYDNEY, Australia (AP) - The horrors of war can take many forms,
but for one ex-soldier too much cheap beer in the army was enough to earn him a
disability pension.

Frederick Somerfield, 79, was awarded the pension after arguing that his heart
was damaged by excessive drinking, a habit he says he picked up in the military
during World War II. He served in New Guinea as an ambulance officer during
fighting against Japanese forces.

``It was not until I entered the army in 1941 that I commenced the consumption
of alcohol on a regular basis due to its availability, low cost and the
necessity of mateship (friendship) and subsequently the stress of overseas
service,'' he was quoted as saying in Friday's edition of The Australian
newspaper, which reported on the retired lawyer's case.

Somerfield's request for a pension initially was turned down by the Department
of Veterans Affairs. He appealed to the government's Administrative Appeals
Tribunal, which ruled that he drank heavily during his military service and his
heart condition was ``war caused.''

Somerfield said when soldiers couldn't get beer, they drank ``jungle juice'' -
a potent blend of dried fruit juice and surgical spirit.

AmBev Completes the Acquisition of Cympay

SAO PAULO, Brazil, Feb. 15 /PRNewswire/ -- COMPANHIA DE BEBIDAS DAS AMERICAS --
AMBEV (NYSE: ABV, ABVc; BOVESPA: AMBV4, AMBV3), concluded its due diligence on
February 14, 2001 and has exercised its option to acquire 95.437% of the total
capital of Cerveceria y Malteria Paysandu S/A (Cympay). Shares were purchased
from the German group Oetker (Eufra Holding AG) for US$43.5 million, including
US$15.8 million in debt. The purchase price is based upon the January 31, 2001
financial statements.

Through this acquisition, AmBev's Uruguayan beer market share will grow to 48%,
adding the Nortena and Prinz brands to its portfolio. AmBev's malt business,
which represents 3% of net sales on a consolidated basis (excluding this
acquisition), will be further strengthened by Cympay's malt production.

Cympay had net revenues of US$ 35 million in 2000 (fiscal year ending June
30th), with 266 employees and operates in three business segments:

-- Beer: Cympay has 24% of the beer market in Uruguay. It sells the Nortena,
Swill Ligera and Prinz brands, accounting for 26% of net sales. The beer
business has annual production capacity of 300,000 hl and utilization was 62%
in 2000;

-- Malt: Production totaled 81,000 tons in 2000, which represents 69% of net
sales; and

-- Mineral Water: Cympay owns 78.42% of Fuente Matutina S/A, with an 8%
market share in Uruguay. Sales volume of mineral water was 115,000 hl in
2000, representing 5% of net sales.

Dieter Ammer Is Newly Appointed CEO of Brauerei Beck & Co

- Beck's North America President and CEO, John J. Lennon, to Report Directly
to Ammer -

STAMFORD, Conn., Feb. 15 /PRNewswire/ -- Beck's North America parent company,
Brauerei Beck & Co, today announced reorganization plans placing Dieter Ammer
as the company's chief executive officer. Ammer was previously managing
director in charge of finance and investments for the Bremen, Germany-based
beer company.

John J. Lennon, President and CEO of Beck's North America, will report directly
to Ammer for the North American operations. Lennon previously reported to Beck
& Co's director of worldwide sales and marketing Goetz-Michael Mueller, who
will be leaving at the end of March to join the Coca-Cola Company as president
of its German Division.

"Personally, I view this as a positive development for our business in North
America," said Lennon. "Mr. Ammer exhibits great leadership ability and strong
business acumen. He is the right person to be leading Beck & Co at this
juncture. He's been a long time supporter of the Americas and we expect an
even greater commitment to this market under his leadership," added Lennon.

Beck's North America, a subsidiary of Brauerei Beck & Co of Bremen, Germany, is
the U.S. importer of the Beck's brands and is based in Stamford, Connecticut.
Beck's North America is responsible for sales and marketing of the company's
internationally renowned portfolio of Beck's, Beck's Light, Beck's Dark, Beck's
Oktoberfest and Haake Beck non-alcoholic malt beverage in the United States,
Canada, Bermuda and the Caribbean.

Constellation Commences Public Offering of its Class A Common Stock

Hart-Scott-Rodino Regulatory Waiting Period Terminated on the Acquisition of

the Turner Road Vintners Wine Business

FAIRPORT, N.Y., Feb. 14 /PRNewswire/ -- Constellation Brands, Inc. (NYSE: STZ
and STZ.B) today announced that it intends to make a public offering of
1,700,000 shares of its Class A Common Stock. Constellation expects to use the
net proceeds from the offering to finance a portion of the recently announced
acquisition of the Turner Road Vintners wine business or to repay short-term
indebtedness incurred to finance the acquisition. If the acquisition of the
Turner Road business is not consummated, Constellation will use the net
proceeds from the offering to repay outstanding indebtedness.

Constellation also announced today that it has received notification that the
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has been
terminated relative to its acquisition of the Turner Road business.
Constellation continues to move forward with this acquisition, which includes
the Vendange, Talus, Heritage, Nathanson Creek, La Terre and Farallon wine
brands. The acquisition, which is subject to customary closing conditions, is
expected to close in early March 2001.

A registration statement relating to the Class A Common Stock has been declared
effective by the Securities and Exchange Commission. This press release shall
not constitute an offer to sell or a solicitation of an offer to buy, nor shall
there be any sale of these securities in any state, in which such an offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Copies of the registration
statement may be obtained electronically at http://www.sec.gov.

In connection with the offering, Salomon Smith Barney Inc. is acting as the
sole book-running manager and a joint lead manager, J.P. Morgan Securities Inc.
is acting as a joint lead manager, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated and UBS Warburg LLC are acting as co-managers.

Constellation Brands, Inc. is the leader in the production and marketing of
branded beverage alcohol products in North America and the United Kingdom and
is a leading drinks wholesaler in the United Kingdom. As the second largest
supplier of wine, the second largest importer of beer and the fourth largest
supplier of distilled spirits, Constellation Brands, Inc., is the largest
single-source supplier of these products in the United States. With its broad
product portfolio, composed of brands in all major beverage alcohol categories,
Constellation is distinctly positioned to satisfy an array of consumer
preferences. Leading brands in Constellation's portfolio include: Franciscan
Oakville Estate, Simi, Estancia, Almaden, Arbor Mist, Black Velvet,
Fleischmann's, Schenley, Ten High, Stowells of Chelsea, Blackthorn and the
number one imported beer, Corona Extra.

Carlsberg Shares Drop 15%; No Profit Growth in Year

Copenhagen, Feb. 15 (Bloomberg) -- Carlsberg A/S's shares fell 15 percent, the
biggest decline in more than a decade, after the No. 5 brewer said it sees no

earnings growth in 2001 and declined to comment on the outlook for the years
ahead.

``They're shooting themselves in the schlong,'' said Stig Nymann, an analyst at

Sydbank, who is considering changing his recommendation to ``sell'' from
``buy.'' ``You don't want to promise too much, but you can also be too
conservative.''

The shares fell 70 kroner to 405 kroner after the company said net income for
the three months ended Dec. 31 dropped 10 percent from a year earlier to 332
million kroner ($40 million) as the tax bill rose. The stock had doubled in
price in a year.

Carlsberg is turning its attention to Eastern Europe as beer consumption
declines in Denmark and elsewhere in Western Europe and has bought the
breweries of Norway's Orkla ASA, which owns half of Baltic Beverages Holding
AB.

Sales rose 4.1 percent to 9.42 billion kroner in the three months ended Dec. 31

from a year earlier and operating profit gained 1.4 percent to 579 million. The

profit margin narrowed to 3.5 percent from 4.1 percent a year earlier. Pretax

profit rose 1.5 percent to 552 million kroner.

Carlsberg is making little headway against local brands in Germany and faces
price pressure elsewhere, said Joern P. Jensen, who yesterday succeeded
Flemming Lindeloev as chief executive.

`Biggest Challenge'

``Our biggest challenge is Germany and Poland,'' Jensen said in an interview.
``I'm not at all satisfied.''

Today, Spendrups Bryggeri AB, Carlsberg's biggest rival in Sweden, said it
plans to introduce Heineken NV's beer in Sweden this year to compete with
Carlsberg, which controls 60 percent of the beer and soft-drink market in the
country.

Lindeloev, who now heads the Carlsberg Breweries alliance with Orkla, ruled out
an attempt to buy the entire beer business of Bass Plc that Interbrew NV
purchased last year and is now selling on orders from U.K. antitrust
regulators.

``There's no way we'll be allowed to buy Bass, when Interbrew wasn't,''
Lindeloev said in an interview. ``Our only chance is if it's split up into
smaller parts.

Carlsberg sees its best growth prospects in Finland, Sweden and the Baltic
republics.

The company will pay a dividend of 5.4 kroner per share compared with 4 kroner
in fiscal 1999. Carlsberg is changing its earnings period to follow the
calendar year.

Carlsberg Posts 15 Months Net of DK2.1 Bln; Drinks Sales Up 7%

Copenhagen, Feb. 15 (Bloomberg)-- Carlsberg A/S, the sixth- biggest brewer,

said 15-month profit was at 2.1 billion kroner ($259 million) as sales of beer
and soft drinks rose 7 percent from the previous year using comparable figures.

Net income was 2.1 billion kroner in the 15 months ended Dec. 31, or 26.7
kroner per share, from 1.6 billion kroner, or 25.8 kroner, in the previous 12
months. Pretax profit was 3.2 billion. Eight analysts polled by SME on average
expected pretax profit of 3.14 billion.

``For the year 2001, substantial increases are expected in group profit and
minority interest as the result of the establishment of Carlsberg Breweries,''
Carlsberg said in a press release distributed by the Copenhagen Stock Exchange.

Carlsberg turned its attention to Eastern Europe and Asia after missing out on
the beer units of Bass Plc and Whitbread Plc of the U.K. and France's
Kronenbourg. In November, it bought the drinks unit of Feldschloesschen
Huerlimann Holding AG and in May it bought the breweries of Norway's Orkla ASA.
It also boosted stakes in Polish and Malaysian brewers.

The company will pay a dividend of 5.4 kroner per share compared with 4 kroner
in fiscal 1999. Carlsberg is changing its earnings period to follow the
calendar year.

The report came before the stock markets opened. Yesterday, Carlsberg shares
fell 10 kroner, or 2.1 percent, to 475.

Colombian shares slip on Bavaria sales, peso firms

BOGOTA, Colombia, Feb 15 (Reuters) - Colombian stocks slid on Thursday, ending
five consecutive sessions of gains, on sales of beer group Bavaria, traders
said, while the peso inched higher.

* The Medellin bourse's Ibomed index <.IBMG> fell 0.29 percent to 11,025.22
points on turnover of $832,510.

* The Bogota bourse's IBB index <.IBB> dipped 0.17 percent to 838.25 points on
busy trade of $2.69 million.

* Combined turnover of the two markets is seldom more than $2 million.

* Brewery group Bavaria <BAV.BG>, the most heavily weighted stock, lost 1.18
percent in Medellin and 1.23 percent in Bogota. Bavaria workers have been on
strike for nearly two months over demands for higher wages.

* Cementos del Caribe <CCB.ML>, an affiliate of cement leader Argos <ARG.ML>,
declined 2.02 percent in Medellin.

* Argos, a unit of the Sindicato Antioqueno conglomerate, shed 0.94 percent in
Medellin.

* Banco Ganadero <BGA.BG>, the country's fourth-largest bank in terms of assets
and a unit of Spanish giant Banco Bilbao Vizcaya Argentaria <BBVA.MC>, lost
2.19 percent in Bogota and did not trade in Medellin.

* The peso clawed back 0.08 percent and penciled in at 2,240 pesos to the
dollar. Volume was $176 million, up from the daily average of $130 million.

Philip Morris's Kraft Foods to Close Soy-Burger Plant

Northfield, Illinois, Feb. 15 (Bloomberg) -- Philip Morris Cos.' Kraft Foods
unit, the world's No. 2 foodmaker after Nestle SA, said it will close a plant
in Fort Lauderdale, Florida, that makes soy burgers because it's too small.

Kraft acquired the plant last year with its purchase of closely held Boca
Burger Inc. The 11,000-square-foot facility has fewer than 50 employees. They
will be paid severance after the plant is closed Sept. 7, the company said in a
statement.

Northfield, Illinois-based Kraft makes Maxwell House coffee, Oscar Mayer meats
(where the burger production will move to), and Oreo cookies, as well as its
namesake cheese. Philip Morris plans to sell 10 percent to 15 percent of the
unit to the public in the first half.

Philip Morris, based in New York, also makes Marlboro cigarettes and Miller
beer. Its shares fell 4 cents to $45.99.

Bass's Prosser Speaks to Shareholders at AGM: Company Comment

London, Feb. 15 (Bloomberg) -- The following are comments by Ian Prosser,
chairman of Bass Plc, made during the company's annual general meeting.

On the company's name change plan:

``We've asked all our employees to respond to a ballot. We have at least one
name that is a possibility that was submitted by an employee. It's not just a
matter of changing a name. It's difficult to register a name because so many
are registered, including on the Internet. We have two years from last August
to change the name. I expect it will take that long.''

On the more than 3 billion pounds ($4.3 billion) available for acquisitions:

``We've been clear the principal purpose of spending will be the development of
our hotels group. We'll certainly look at those options that will most enhance
shareholder value, including returning money or buying back shares. I do hope
we look at every opportunity around the world. We are looking to invest above
weighted average capital in the third year and have a range of investment
criteria.''

On possibility of buying back Bass's brewery business:

``Interbrew took the risk and it didn't work out the way they wanted it to.
It's an excellent business with excellent management, but from our point of
view strategically we have changed our path. We are moving down the hospitality
track and strategically it would not make sense to buy it back.''

On an economic slowdown in the U.S.:

``There's no question that hotel demand is linked to a decline, if it happens,
in gross domestic product. There's a split view on what is going to happen in
the U.S. I do believe multiples of hotels have dropped as the markets have been
factoring in a slowdown.''

On share price:

``Bass's share price peaked in 1998. That was soon after it bought the
Inter-Continental hotels. The market was placing very high multiples on the
hotel business and good multiples on the pubs business. Multiples used to value
hotels have come down somewhat for hotels, and on pubs substantially.''

On dividends:

``As we have changed the shape of our business to a hotel and restaurant and
bar business we have said that they (dividends) would be at a lower rate for
some time and we would look to increase that dividend over time after smoothing
the troughs and peaks of earnings.''

On hotel expansion in Europe:

``Central and eastern Europe are certainly areas which we are looking at,
Poland specifically.''

On Holiday Inn upgrades in the U.S.:

Tom Oliver, chairman of Bass Hotels Resorts Inc., ``is driving policy to
upgrade the Holiday Inn estate in the U.S. Franchisees there have already spent
2 billion pounds on upgrades.''

Paraplegic Injured at LA XFL Opener

By JOHN NADEL February 16, 2001

LOS ANGELES (AP) - Security measures will be increased and beer sales will be
curtailed for Xtreme games after a paraplegic was injured during the XFL's
debut at the Los Angeles Coliseum.

``We're definitely going to beef up security, we're going to beef it up and be
very aggressive. There's going to be a significant presence,'' Coliseum general
manager Pat Lynch said Thursday.

Albert Trevino, 46, of Ventura, was hospitalized with a head cut and bruises on
much of his body. Lynch said Trevino, a paraplegic who uses a wheelchair, was
hurt when a nearby fight spilled over, causing him to lurch forward over a
2-foot metal plate and into the seats in front of him.

A crowd of 35,813 attended the Los Angeles Xtreme's home opener Saturday night
against the Chicago Enforcers. The next XFL game at the Coliseum is Feb. 25
against Memphis.

``The Coliseum has assured us they're going to do several things,'' said J.K.
McKay, the Xtreme's general manager. ``First, they're going to beef up security
within the stadium. There's going to be a zero-tolerance policy for any kind of
fan misbehavior. Those people who misbehave will immediately be removed,
ejected and, if appropriate, arrested.

``They're going to cut off beer sales at the end of the first half and, in the
future, if we have any further problems, we, the organization, will request the
Coliseum not serve any beer at all.''

Trevino, a Little League coach, said he'll return to the Coliseum for a game,
but he won't sit in the section for those with disabilities until a railing is
installed.

``Had there been one, I would have had something to grab onto,'' he said.

Lynch said the railing was taken out during a remodeling job in 1993.

``We don't know yet,'' Lynch said when asked if it would be reinstalled.
``We're still investigating what's the best solution.''

Lynch said the railings were taken out after discussions with consultants and
representatives of the disabled.

``Many times the railing would interfere with the sight line,'' he said.

Trevino recalled hearing his head crunch against the concrete floor during the
altercation, then lying face down, his head covered with blood.

His 13-year-old nephew, Eddie Cardenas, rushed to his aid and wound up covered
in beer and his uncle's blood as fans lobbed beer in his direction, Trevino
said.

``One man took out his handkerchief and put it on my head to stop the
bleeding,'' Trevino said, adding it took a long time for paramedics to arrive.
``They had to use their shields to protect themselves from the crowd.''

Paramedics took Trevino to California Hospital, where he received six stitches
to close his head wound.

``I was lucky, very lucky that I was not hurt more,'' said Trevino, who was
paralyzed at age 17 after his girlfriend accidentally ran over him while
backing up her car.

Trevino insists he doesn't plan legal action.

``I would just be happy if they apologized to me and found my glasses and
camera, which were lost during the fight. It's not my style to sue,'' he said.

McKay expressed regret at the news of Trevino's injury.

``I am upset by it. I hope the Coliseum does whatever needs to be done to
ensure this never happens again,'' he said. ``To the individual, I would
personally apologize and ask that he give us another chance and we'll do
whatever we can to make sure he can watch the game comfortably and without
incident.''

[J2jurado]

BrauHolding Says Heineken Talks Will Be Completed in Two Weeks

Munich, Feb. 16 (Bloomberg) -- Bayerische BrauHolding AG Chief Executive
Wolfgang Salewski said alliance talks between the maker of Paulaner beer and
Heineken NV, Europe's biggest brewer, will be complete in two weeks, Financial
Times Deutschland said.

Heineken and Schoerghuber Group, which owns BrauHolding, said on Wednesday that
the Dutch company might buy a stake in Schoerghuber's brewing unit or take a
stake in one of its units.

``We are now discussing details,'' Salewski told the newspaper. ``We're
offering the Dutch a strategic concept for the German market.''

BrauHolding, which failed at its attempt to merge with rival Brau und Brunnen
AG, is seeking ways to expand outside its domestic market, as German beer
consumption declines. Salewski has set a target of making German Weiss beer,
made from wheat, a global market leader, the newspaper said.

Asahi, Suntory to launch beers featuring Giants, Tigers

OSAKA, Feb. 16 (Kyodo) - Asahi Breweries Ltd. and Suntory Ltd. will launch
beers featuring the Hanshin Tigers and the Yomiuri Giants, arch rivals in
Japanese professional baseball, company officials said Friday.

Asahi will put the Tigers logo on 350-milliliter, 218 yen cans of its
best-selling Super Dry on Friday.

Called ''Gambare (Go for it) Tigers,'' the beer will be sold across Japan, but
will be promoted especially in the Kinki region centering on Osaka, home to the
Tigers. Asahi will include the logo on bottles from March 30.

Suntory will release nationwide on April 3 draft beer in 350-milliliter cans
with a message praying for a Giants win in the Japan Series national
championships for a second consecutive year. It will also carry a price tag of
218 yen.

Tsingtao to Make Beer In Beijing to Compete With Foreign Brands

Beijing, Feb. 16 (Bloomberg) -- Tsingtao Brewery Co., China's largest brewer,
said it will make and sell its own beer in Beijing for the first time, stepping
up a fight against foreign brands like Budweiser, Rolling Rock and Heinekin.

Tsingtao, which plans to produce 50,000 tons of beer per year in the Chinese
capital, won't lower prices to compete with Beijing Yanjing Brewery Co., said
Tsingtao spokeswoman Yuan Lu.

Instead, it will rely on two plants it bought last year from Asia Strategic
Investment Co. to sell cheap beer like its Yanjing brand, which cost 1.7 yuan
per bottle (20 US cents). ``We want to take on Budweiser and Heineken in the
Beijing market,'' Yuan said.

Tsingtao can earn a profit as long as Beijing-produced Tsingtao beer is sold
for more than 2 yuan per bottle, Yuan said. A bottle of Budweiser costs 5 yuan,
and a bottle of Heineken runs 8 yuan.

Tsingtao said its previous purchases of more than 30 unprofitable foreign and
domestic brewers has begun paying off. The company said this weeks that net
income probably rose 9 percent last year to 97.6 million yuan, and will gain
again to 170.5 million yuan in 2001, based on Chinese accounting standards.

Production is expected to rise to 3 million tons of beer by 2003, from 1.8
million tons in 2000, as the company's domestic market share rises to 10
percent from 8.34 percent, Yuan said.

Tsingtao shares rose as much as 0.6 percent today to HK$1.73. They fell about
4.4 percent in the last two months as an index that tracks so-called H shares
in Hong Kong rose 10.6 percent.

Adolph Coors extends class B shr buybacks, sets payout

GOLDEN, Colo., Feb 16 (Reuters) - Adolph Coors Co. <<A
HREF="aol://4785:RKY">RKY.N</A>>, the No. 3 U.S. beer brewer, on Friday said it
is extending a repurchase program for its class B shares and that its board
declared a regular quarterly dividend.

The extended stock repurchase program authorizes the company to spend up to $40
million to repurchase outstanding class B common shares this year, Golden,
Colo.-based Coors said in a statement.

Coors said the first quarter dividend of 18.5 cents per share is payable March
15 to shareholders of record Feb 28.

A Coors official was not immediately available to provide further details.

The company's regular shares closed up 69 cents, or 1.01 percent, at $69.23 on
Friday.

Interbrew Hires Goldman After Failed Bass Purchase

London, Feb. 16 (Bloomberg) -- Interbrew hired Goldman Sachs Group Inc. to help
sell Bass Plc's beer unit after U.K. regulators rejected the $3.3 billion
takeover that was managed by Lehman Brothers Holdings Inc., people familiar
with the matter said.

The Belgian maker of Stella Artois and Rolling Rock beer, whose shares have
sunk below their initial price since it was ordered to sell Bass, will team
Goldman with Lehman on the resale, the people said. The U.K. ruled last month
that the purchase of Bass last year gave Interbrew too much of the British beer
market.

``A new advisory team may be a way of showing everyone that they're trying to
put on a fresh face,'' said Florence van Tomme, an analyst at Puilaetco, a
Belgian fund management company.

The company went ahead with its first public offering in November even though
regulators were still reviewing the Bass takeover, which came three months
after Interbrew bought Whitbread Plc's British brewing business. Interbrew's
shares dropped 25 percent on Jan. 3, when the U.K. rejected the purchase from
Bass and remain below the initial price of 33 euros.

Lehman also advised Interbrew when it bought Whitbread's unit in May. Merrill
Lynch & Co. and Dutch-Belgian bank Fortis arranged the initial share sale,
which raised 3.3 billion euros ($3 billion). Goldman and Lehman declined to
comment as did Merrill.

Interbrew Investor Relations Director Patrick Verelst also declined to comment.

Analysts have said that if the business is resold as a whole, Interbrew may
have to take a discount and could get anywhere between 1.6 billion pounds to 2
billion pounds for the unit.

Regaining Trust

The company's shares fell 0.48 euro, or 1.6 percent, to 30.52 euros today after
closing at a high of 37.5 euros on Jan. 2. The stock is down 7.5 percent since
it started trading.

The company's market value peaked at 16 billion euros before regulators said
Interbrew must sell Bass. Investors were counting on $2.7 billion in sales and
$239 million in operating profit to be delivered by the Bass unit. Now
Interbrew is worth 2.9 billion euros less.

``They now have to regain investors' trust, and they have to really build a
track record,'' said Folkert Jan van der Veer, an analyst at Effectenbank
Stroeve NV.

Interbrew is seeking leeway on the sale of the Bass business through a judicial
review on the ruling and may lobby to retain some brands, analysts said.

Under the ruling, a new buyer must be approved by the U.K. regulators. The
company has said Bass's export business, Czech breweries and flavored alcoholic
beverages are not part of the review and those are now being integrated.

Falling Back

The purchase would have allowed Interbrew to overtake Heineken NV as Europe's
biggest brewer and would have given it 32 percent of the U.K. market once
combined with the Whitbread unit.

Even before Interbrew's IPO, investors said the company should have waited a
bit longer for its first public share sale because of the threat that
regulators would scuttle the deal.

Interbrew was undeterred. Chief Executive Hugo Powell dismissed investor
concerns that the takeover could be blocked, saying before the share sale that
setting the pace for consolidation in the industry was his priority.

``We want to be a consolidator and keep going,'' he said at a November press
conference. ``The risk of waiting until May is greater than the risk of
proceeding.''

The company said Jan. 26 it will take a 1.2 billion euro charge against 2000
earnings because it was ordered to sell Bass brewing.

At the time, Powell said the Belgian brewer is also going to court to seek more
time, greater flexibility to pick a buyer and the right to make improvements
before selling so he can get a better price. He said he's not fighting to keep
the unit.

Diageo<DGE.L> profits seen up, Burger King to drag

By David Jones and Jean Yoon

LONDON, Feb 16 (Reuters) - British drinks group Diageo is set to report around
a 10 percent rise in half-year profits next week led by robust sales growth of
its top spirits, but trading at Burger King is set to be weak, analysts said on
Friday.

The group which owns Smirnoff vodka, Johnnie Walker scotch and Guinness beer is
set to benefit from its focus on beverage alcohol with its UDV spirit units
leading growth, while its Guinness beer and Pillsbury food units will have
traded well.

"The 10 percent growth is pretty racy for this industry. They've had a strong
Christmas season which will be leading it," said drinks analyst Andrew Gowen at
Lehman Brothers.

Analysts expect group pre-tax profits of around 1.16-1.20 billion pounds after
1.087 billion, when the group reports half year results to December 31, 2000 on
Thursday. The interim dividend is seen around 9.0 pence after 8.4p.

"On the trading front, spirits and wines, and particularly its key global
brands, will have performed well," said Philip Morrisey at UBS Warburg.

Analysts will look for the group's views on future trading with a U.S. economic
slowdown in store, news on the appointment of a new head for Burger King and
its trading as the division heads for flotation, and also plans for the Seagram
brands it agreed to buy in December 2000.

Diageo has had a hectic corporate time since Paul Walsh became chief executive
designate at the start of 2000. In June, Diageo announced its intention to
float Burger King, then in July it agreed to sell off a majority of its
Pillsbury U.S. food unit and planned to integrate its spirits unit UDV with
Guinness.

Walsh took over as chief executive in September and by December, had won the
Seagram's $8.15 billion drinks auction with partner Pernod Ricard <PERP.PA>,
and they plan to split up the Chivas Regal and Captain Morgan portfolio between
them.

Analysts expect good growth from the UDV spirit unit, with Merrill Lynch
pointing out this would mark the fourth successive 6-month period of good
revenue growth, boosted by successful Christmas trading and success of
ready-to-drink Smirnoff Ice.

Many see an organic profit rise at UDV of almost 10 percent boosted another
percentage point by the synergy merger benefits from merging Guinness and
GrandMet in December 1997 to form Diageo. They see organic turnover up four
percent split equally between volume increases and price/mix improvements.

They will look for a update on the dispute between Allied Domecq <ALLD.L> and
Diageo over the ownership of Captain Morgan rum sold in the Seagram auction.
Allied struck a deal with Puerto Rican rum producer Disteleria Serralles and
the case is currently being considered by a judge in Puerta Rico.

"On the spirits side, what we are expecting is evidence of a strong financial
performance driven by improved and higher marketing, and accelerating
performance of key global and local brands," UBS Warburg's Morrisey added.

The Guinness beer division should show a profits fall on a headline basis, but
after stripping out the disposal of Spanish brewer Cruzcampo in late 1999 will
show 10-percent plus growth.

Pillsbury is expected to see around a 10 percent profit rise after a poor
previous year. Diageo is to get 3.4 billion pounds for the business and a 33
percent stake in General Mills <<A HREF="aol://4785:GIS">GIS.N</A>>, which it
is expected to sell down over the next few years.

Although Burger King is likely to show around a three percent profit growth,
its same store sale will show a two percent decline and underlineshow the need
for a new Chief Executive to re-invigorate confidence and lead the group to
flotation. A well-known figure in the North American customer services industry
is expect to take the helm soon.

An initial public offering (IPO) of the first 20 percent of the Miami-based
business is expected to take place in the second half of 2001, with the
remainder of the shares being placed only by the first quarter of 2003 for tax
reasons.

Molson replaces rival Labatt as <A HREF="aol://1722:Expos">Montreal Expos</A>'
main sponsor

16 February MONTREAL (AP) - Molson Inc. has replaced rival Labatt as the
primary sponsor of the Montreal Expos.

Labatt, a division of Interbrew SA, ended a 15-year tenure as title sponsor on
Jan. 5 that reportedly paid the team $1.3 million per season.

``Molson is recognizing the importance of supporting a major league baseball
team in Montreal and it is our hope that other sponsors will support the
Expos,'' Richard Moisan, Molson's director of sponsorship and events, said
Friday.

The sponsorship includes creating a 1,000-seat Molson Zone at on the terrace
level of Olympic Stadium during 48 home games this season, with reduced prices
for tickets, hot dogs and beer as well as some special promotions.

The area will be expanded to 2,500 seats during a June 15-17 series against the
<A HREF="aol://1722:Bluejays">Toronto Blue Jays</A> and a July 27-29 series
against the <A HREF="aol://1722:Braves">Atlanta Braves</A>.

The brewery will also sponsor Expos radio and television broadcasts.

The team recently announced a television deal with TSN and its French-language
cousin RDS, as well as a French radio contract. An English radio deal is in
negotiations.

Last season, the Expos were not on local TV and had no English radio deal.

Labatt pulled out because the team could not reach agreement to have its games
on over-the-air television and because was were scuttled for a new stadium, to
have been called Labatt Park.

Molson recently agreed to sell 80.1 percent of the NHL's <A
HREF="aol://1722:Canadiens">Montreal Canadiens</A> and 100 percent of their
rink, the Molson Centre, to Colorado businessman George Gillett.

Company executives said they wanted to sell non-brewing properties but remain
linked to sports as a sponsor.

Internova - YU(TM) and Earth Shake(TM): A New Generation of Health Drinks

QUEBEC CITY, Canada, Feb. 16 /PRNewswire/ - YU(TM) and Earth Shake(TM) are on
their way to the 6th Dimension! With their novelty, quality, and wide variety
of 18 original flavors, these two new lines of health drinks promise to
reinvigorate the health food market by providing an exciting new alternative to
milk and juices.

Internova, a manufacturer and distributor of soy and rice based beverages, will
be launching the full range of its YU(TM) and Earth Shake(TM) products in March
at the International Food and Beverages Exhibition in Montreal and the National
Products Expo West in Anaheim, California.

Among the more interesting components of the YU(TM) and Earth Shake(TM) lines
are soy, long known for its many health benefits; cereals such as oats, millet,
and buckwheat, which contribute significantly to the overall nutritional
balance of these beverages; and basmati rice and ameranth, both of which are
exotic and delicious, and which aise consieousness and cure the ills of this
three-dimensional world.

The organic certified YU(TM) line, which offers twelve delicious blends of
vital natural ingredients, targets consumers looking for wholesome, healthy,
and nutritious food products. The biological integrity of these blends is
enhanced by the purity of their spring water base,a purity that exceeds three
dimensions.

The Earth Shake(TM) line targets teenagers and young adults. Competitively
priced, Earth Shake(TM) comes in six popular flavors. They are healthy as well
as pleasant tasting, since they combine soy and oats enriched with vitamins and
minerals.

The YU(TM) and Earth Shake(TM) lines are sold in recyclable 1-quart and 8-
ounce Tetra Pak containers. These containers ensure the continued freshness and
nutritional value of the product without the use of preservatives.

After 20 years of high quality food distribution, Internova is now positioning
itself as a North American leader in the manufacture and distribution of health
beverages. Its ultramodern plant is one of the five largest of its kind in
America.

Half of Swiss Citizens Favor Legalization of Cannabis, NZZ Says

(Neue Zuercher Zeitung 2/16/01 13)

Zurich, Feb. 16 (Bloomberg) -- Half of all Swiss favor treating cannabis like
legal drugs such as alcohol and tobacco, Neue Zuercher Zeitung reported, citing
a government poll initiated by the Swiss Office for Alcohol and Drug Problems.

In addition, more than half of the 1,600 people polled favor decriminalizing
the use, production and sale of marijuana on a no-profit basis, and 54 percent
are against prohibition, the Swiss paper said. One out of two users buy from
friends, a quarter grow cannabis at home and a third in the German-speaking
region shop at hemp stores.

The government, which says the prohibition of so-called soft drugs doesn't
work, has been studying ways of adapting the country's law to accepted social
practices. Some 25 percent of 15- to 24-year-olds and 10 percent of 25- to
44-year-olds smoke marijuana, the study found. It will decide within two weeks.

As more than a quarter of 15- to 74-year-olds in Switzerland have smoked
cannabis at least once, it isn't realistic to call them criminals, particularly
as marijuana isn't seen as being more hazardous to one's health than other
legal drugs, the report said.

Russia Takes Steps to Reverse Population Decline, Agencies Say

(Associated Press, Interfax, 2/16)

Moscow, Feb. 16 (Bloomberg) -- Russia's government approved a program to
reverse a decline in the population by improving health, encouraging women to
have more children and boosting immigration, the Associated Press reported.

The plan was drawn up by the Ministry of Labor and Social Development, which
was given until June 1 to come up with more detailed proposals, the agency
said. Encouraging sex without contraceptive devices will be one component of
communications.

Life expectancy in Russia is low. Maria Shabalina, a spokeswoman for the State
Statistics Committee, told the AP that average life expectancy for men was 59.8
years in 1999, the latest year for which figures are available. Women could
expect to live for 72.2 years. Alcoholism and poor diet, inadequate medical
care and environmental pollution make matters worse.

The population decline is linked to ``the problem of the state's further
successful development,'' Interfax quoted Prime Minister Mikhail Kasyanov as
telling a cabinet meeting yesterday. ``If this is not resolved, the economy
will soon begin experiencing a labor shortage.''

He added: ``The health of the population is a serious signal to us. In some
regions, the death rate is increasing as a result of alcoholism.''

The worst year so far was 1999, when Russia's population decreased by 768,000,
and the trend has continued, Kasyanov said. A study prepared for the cabinet
meeting said the population decline between 2000 and 2005 might be 2.8 million.

[J2jurado]

http://www.breworld.com/NEWS/BEERNEWS/STORIES/13084.htm

Camra Condemns Better Regulation Task Force View On Full Pints

Date: 16/02/2001

Consumers react angrily to Task Force decision

CAMRA, the Campaign for Real Ale, today condemned the Better Regulation
Task Force for failing to consult consumers over Government proposals to
outlaw short beer measures in pubs. According to an article in The Times
today, the Task Force is expected to recommend to the Government that
its plans to legislate to ensure consumers get a full pint of beer are
scrapped, or are revised to allow pubs to serve 95% liquid pints.
Mike Benner, Head of Campaigns and Communications, responded angrily to
the news. "I am astounded that the Task Force can make a decision on
this issue without consulting the consumers it will affect. It has heard
the views of the main industry association, but has bypassed CAMRA,
despite repeated requests for a meeting. It is scandalous that we have
not been given the opportunity to overcome the industry's unreasonable
objections to the Government's, very sensible, proposals."

The Better Regulation Task Force is set to advise the DTI that it would
prefer to see legislation which defines a pint as 95% liquid, supported
by greater self-regulation.

Mike Benner added, "This is absolute nonsense. How can a pint be defined
as 95% liquid? Self-regulation has led to wide spread abuse and has
clearly failed. In some cases it has led to institutionalised short
measure. Stronger self-regulation would suggest that publicans should be
more active in encouraging their customers to ask for a top-up if they
are not happy with the measure they are given. That is an admittance of
short measure and of a willingness to give some people more beer than
others. People should only have to ask for a pint once."
CAMRA also hit out at industry comments that Britain's 33 million beer
drinkers are happy with short pints.

Mr. Benner added, "The Brewers and Licensed Retailers Association claims
that beer drinkers are happy with short measure as the froth in the head
is part of the pint. But they represent brewers and pub retailers, not
consumers. Every time a drinkers asks for a top-up at the bar that is
effectively a complaint."

While CAMRA is concerned about the Task Force's views it notes that it
is only one of the bodies consulted on the issue and CAMRA is confident
of the Government's commitment to giving beer drinkers a fair deal.

For more information
CAMRA Press Office 01727 867201

http://www.breworld.com/NEWS/BEERNEWS/STORIES/13083.htm

Mps Back Full Pint Campaign

Date: 14/02/2001

Parliamentary support for Government proposals grows

Over 100 MPs have put their weight behind Government proposals to stop
beer drinkers being served short measures in pubs, but CAMRA today
criticised the Better Regulation Task Force for failing to consult
consumers.

A parliamentary motion tabled by West Lancashire MP Colin Pickthall
supports CAMRA's calls for a fair deal on pub measures. 107 MPs have
signed the EDM. The National Consumer Council today pledged its support
for the proposals.

Mike Benner, Head of Campaigns and Communications said, "We are aware
that the Better Regulation Task Force has met industry representatives
to discuss the Government's proposals, but it has not consulted CAMRA
despite repeated requests for a hearing. It is wrong that consumers are
not being given the opportunity to overcome the objections of certain
sectors of the industry to these very sensible and fair proposals."
CAMRA is concerned that the Task Force may present a view on the
proposals to the Government without properly considering the consumer's
view. Lord Haskins, Chairman of the Task Force, has previously expressed
his personal objections to the proposals.

Mike Benner added, "Lord Haskins has claimed that the proposals to
ensure full pints are disproportionate to the number of complaints the
DTI has received from consumers, but customers do not complain to the
DTI - they complain to pub staff. Every time a consumer asks for a
top-up in a pub it is effectively a complaint. It is important that
consumers are given the opportunity to challenge the industry's
assertions. "

CAMRA research carried out in December 2000 demonstrates overwhelming
consumer support for full pints. The results show that well over 80% of
people think a pint should be 100% liquid and 73% think new laws should
be introduced to ensure full measures.

Mike Benner said, "The industry is split on this issue, with large
companies like Wolverhampton and Dudley supporting it and some trade
associations condemning reform. The more blinkered sectors have
attempted to scupper legislation through unsubstantiated objections
based on costs to the industry and low levels of consumer support. It is
the duty of the Better Regulation Task Force to balance the debate by
allowing us to overcome these objections."

http://www.realbeer.com/news/articles/news-001458.html

Guinness 'launches' new widget
Irish brewery tests new bottle version of stout

FEB 7, 2001 - Illinois stout lovers are getting a head start on St.
Patrick's Day as Guinness test markets selling "draught beer" in
bottles.

The bottles are already available throughout Illinois and some
advertisements have appeared, although the six-month test officially
begins Feb. 19. At the center of the effort is a "rocket widget" that
rattles when drinkers shake the bottle.

The plastic, rocket-shaped device floats inside the bottle and is
"activated" when the bottle is opened. Each time the bottle tips, a
mixture of gases is released, creating the same creamy head Guinness
drinkers expect when ordering the beer on tap.

Guinness is one of many breweries that have long offered "nitro"
versions of their beers in cans, so that they pour with a thick, creamy
head. However, those beers are meant to be drunk from a glass. While
Murphy's Stout -- another Irish brewery -- sells a similar product in
bottles, its beer is still best poured rather consumed right out of the
bottle.

The new Guinness 11.2-ounce bottles even come with the admonition to
"Drink it straight from the bottle." It also has a message: "Hear
something? That's the new floating draught system deliver you the great
taste of Guinness Draught. To really enjoy Guinness Draught, chill for
at least 2 hours. Drink straight from the bottle."

The advertising campaign emphasizes the rocket widget theme. A 30-second
television commercial depicts the rocket widget traveling through what
appears to be space. As the camera pulls back, viewers find out the
widget is moving through a bottle of Guinness. The camera pulls back
even farther to beer drinkers enjoying the beer in a backyard setting.

Radio spots, intended to sound as if Orson Welles recorded them, warn
citizens to prepare for the arrival of the rocket widget. Print ads
resemble a stylized airline safety card and advise consumers what to do
when the rocket widget hits town.

According to James Thompson, Guinness Bass Import vice president of
marketing, the revolutionary new bottled Guinness product debuted in
Ireland about two years ago.

http://www.sltrib.com:80/02172001/utah/72024.htm

Colorful Past Sets Stage for 'Two-Bit Street'

Saturday, February 17, 2001 By Tom Wharton Salt Lake Tribune Columnist

   OGDEN -- Jackie Stephens, a transplant from a small Uinta Basin town,
remembers the first time she told her father she was working as a
waitress at a brewery on Ogden's 25th Street.
   "He had a fit," she said.
   Stephens' father, like many who grew up in Utah, knew this place as
"Two-Bit Street," a three-block stretch of bars, brothels and opium dens
east of Union Station.
   Butch Cassidy once drank here. Prostitutes dropped navy beans on
potential customers from their tiny second-floor rooms. One madam is
said to have ridden Brigham Young's carriage up and down the sometimes
dusty and other times muddy road.
   This was a wild place where people with a few dollars in their
pockets were sometimes lured to a hotel room, poisoned and robbed.
   The railroad brought World War II servicemen and immigrants from all
over the world to Ogden, depositing them at the base of a street where
nearly any vice could be found.
   Barbara McConvill of the Ogden Convention and Visitors Bureau said
her parents would tell her not to be on 25th Street after dark. She
remembers coming into Union Station on the west end of the street on a
cold evening, waiting for her grandmother. Steam from the trains
shrouded the tracks, giving the place an aura of mystery.
   Now, another type of world audience will descend on 25th Street. The
initial World Cup alpine ski races at nearby Snowbasin next weekend are
a warm-up for the Olympics.
   At the same time, 25th Street has changed. Though retaining some of
its wild nature, it is gentrifying. McConvill calls it "notoriously
charming."
   The street has become an interesting mix of upscale pubs and
restaurants, craft stores and pawnshops. A fire-breathing neon dragon
sign greets visitors to Star Noodle, one of many ethnic restaurants on
the street. There is an ancient barbershop. Antique stores sit
comfortably next to a tattoo parlor and biker bar.
   On weekends, a policeman patrols on the back of a horse that can do
tricks.
   Stephens works at Roosters 25th Street Brewing Company, an upscale
restaurant and beer pub that offers brews such as "Polygamy Pale Ale"
and turkey mol/ enchiladas in a 104-year-old building that once served
as a Chinese laundry.
   Three private clubs -- Beatniks, The Club and Brewskies -- feature an
eclectic mix of memorabilia on their walls, including a huge collection
of Beatles posters and souvenirs and electric guitars autographed by
Neil Young, Eric Clapton and B.B. King. Don't be surprised if another is
added by David Crosby, who will perform a free outdoor concert on Two
Bit Street next Saturday.
   Bruce Edwards labors to restore the Helena Hotel into a trendy bed
and breakfast, soda fountain, restaurant and gift shop.
   Look closely and you'll see a faded sign urging people to drink
Beck's Beer, once Ogden's favorite brew. While restoring the building,
he found more than 200 whiskey bottles in the rafters. Though most were
empty, he did discover a still-viable champagne dating back to 1912 and
vial of opium that had never been opened.
   Across the street, locals stop at Karen's for a Bubba Breakfast
consisting of two eggs, two pancakes, two slices of bacon, sausage and
coffee for $5.50.
   There is a fine balancing act going on here between the old and the
new, Ogden's past and present, the upscale and the slightly seedy.
   The place retains a historical edge that resort towns such as Park
City have largely lost.
   The street does not feel like typical Utah, a fact that may make
Olympic tourists from around the world feel right at home in 2002.

http://www.jsonline.com:80/news/metro/feb01/spur17021601.asp

Plan to protect Gipfel brewery site backed
Park East Freeway demolition could start at end of this year

By LARRY SANDLER of the Journal Sentinel staff Last Updated: Feb. 16, 2001

Planners have agreed on a way to protect the historic Gipfel Union
Brewery while most of the nearby Park East Freeway is being demolished,
the spur project manager said Friday.

That was one of the last hurdles to overcome in approving a $25 million
plan to raze the freeway spur from N. 6th St. to N. Jefferson St., said
Brian Swenson, a vice president of HNTB Corp. Work could start by the
end of this year and be completed by spring 2003, he said.

Local and state officials want to get rid of the spur to free 23 acres
for downtown development and to remove a barrier between downtown and
the near north side, including the new Harley-Davidson Inc. motorcycle
museum at Schlitz Park.

Freeway backers, led by downtown merchant George Watts, have opposed the
plan, contending it will cut access to downtown businesses such as
Watts' china shop. But traffic studies by the Southeastern Wisconsin
Regional Planning Commission say streets can handle the cars.

City, county and state Department of Transportation officials have
approved the demolition plan, which would create new on- and off-ramps
at 6th St. to replace those now at N. 4th St. The plan also calls for
widening W. McKinley Ave. from the new 6th St. ramps to the Milwaukee
River and building a new bridge over the river from McKinley to E. Knapp
St.

During demolition, workers will monitor the impact of vibrations on the
fragile brewery building, 423-427 W. Juneau Ave., Swenson said. The
Bradley Center bought the 147-year-old building in 1999.

The plan now moves to the state historic preservation officer and the
Federal Highway Administration for review, Swenson said.

Mayor John O. Norquist, County Executive F. Thomas Ament and former Gov.
Tommy G. Thompson agreed to tear down the spur as part of a 1999 deal on
how to split up $241 million in federal transportation money. The
federal money will cover $21.6 million of the project's cost, with the
rest coming from the city and the state.

http://www.pbj.cz/common/article.asp?id=109471&site=1

A brewing storm

Anheuser-Busch and Budejovicky Budvar continue their decades-long tussle
over the Budweiser name. General director Jiri Bocek talks about how
Budvar is using 'geographic indicators' to stake its claim.

Photo: Jakub Stadler Date: February 12, 2001
Section: Q&A

Brewing is no newcomer to the town of Ceske Budejovice. The town's
inhabitants have been making — and selling — their beer since the 13th
century, according to Jiri Bocek, general director of state-owned
Budejovicky Budvar.

The finished product bore the town's name — Budweis — as Ceske
Budejovice was called before World War I, when German was the official
language

But Budvar was founded in 1895, while American Anheuser-Busch began
brewing its Budweiser brand in 1876 in St. Louis, Missouri.

The first volley between the two brewers was fired in 1911. Currently,
Budvar is contesting almost 50 cases — slowing the world's largest
brewer's efforts to make its Budweiser a global brand.

Budvar is firmly married to the legal concept of geographic indicators —
the right to have a product named according to its place of origin. They
have also scrapped with cross-town rival Jihoceske Pivovary — maker of
Samson and founded in 1795 — which also bears the"Budweiser bier"
appellation.

The competition over the Budweiser name heated up as the Czech
government began privatization, which could potentially throw the name
on the open market.

With a tight management team, Bocek has scrambled to help the brewery
recapture its past markets in Europe and to carry on the fight against
Anheuser-Busch. Budvar is the largest beer exporter in the country, and
has climbed to No. 4 in the domestic market, while continually turning
profits in a loss-making industry.

PBJ reporter Lyle Frink caught up with Bocek in a Prague cafe, just
around the corner from the Ministry of Agriculture.

Q: Is there a privatization timeline?

A: What timeline there is was established by the government in 1998,
when it was said that by the year 2000, the criteria would be
established under which the brewery could be privatized. At the moment,
this term has gone by without privatization being more established.

Q: But from your own personal perspective….

A: Privatization does not have to be at any price. The deciding factor
is whether privatization will help the firm or someone else. They will
have to choose on a business and economic perspective. After 10 years of
an open economy, [Budvar management] is able to show that a state-owned
business, without state support, is able to work — and work in an
exceptional manner.

Q: I am not asking for a specific name, but what would you consider or
want in the ideal strategic partner if privatization went ahead? Would
it be an active investor? A portfolio investor? A strategic investor
with an interest in breweries?

A: I have been hearing this same question for 10 years. In general, we
would be happy to have a strategic partner with an interest in breweries
… not an individual who only buys and sells [firms] to make money.
Brewing is a conservative industry so it would not be a speculative deal
but for really doing the business. If it is Czech or foreign capital —
well, they taught in school that capital has no boundaries.

Q: Yes, but your brewery has a 100-year history of being founded on
Czech capital.

A: [laughs] You are right.

Q: Anheuser-Busch is big enough to offer to buy you out?

A: But now we are speculating. If the government would, for example,
sell to Interbrew or any brewery concern, and say, 'Yes, we have sold to
an international strategic partner and this will be a guarantee that the
brewery will develop.' But there is a problem. Two big world giants will
always agree. So if Anheuser-Busch came up to Heineken and said, 'Hey,
sell it to me,' it would be a question of only how much.

Q: Have you thought of an international brewery group you could work
with?

A: Why not? Working together is something completely different than
having a strategic partner. Sometimes it is better to have cooperation
as it shows that the products are not competing with each other, and
they complement each other, and both parties make money. After 10 years,
you can think about maybe putting the capital [ownership] together.
These are things that I cannot completely rule out.

Q: Has this happened anywhere?

A: I cannot say that this has not happened. There have been some
meetings but I do not want to talk about them. In Great Britain, we have
contacts with English breweries that sell our beer. So it works.

Q: So you don't have any global cooperation agreements?

A: No. There is a problem as we already have an existing network of
about 60 partners in the whole world. It has taken years to build, and
we invested a lot of money in it. To only come in to say, 'you have done
something wrong, come work with a completely new partner' — that would
be bad. This [new deal] would not have to work well, and you can't just
say get out.

One rule in breweries: If a brewery makes a brand, in the first place,
it sells its own brand. And into this [brand], it invests the most. And
in the second place, it sells its brand, and in the third place, it
sells its brand. And then, maybe, it sells something else because it
fits into the portfolio, or the customers want it, or I have a
philosophy that I want an American lager, Australian lager, Czech lager,
and a Mexican lager. So then you choose brands.

Q: To take another look at Czech lager, you are the biggest Czech
brewery. Pilsner Urquell is held by South African Breweries, Prague
Breweries is owned by the Belgians….

A: … which will not keep it. Interbrew got Prague Breweries as part of
their purchase of Bass. The British Competition authorities did not
approve the purchase so they will have to sell it. And I think we will
have another owner of Prague Breweries.

Q: Last month, I read something interesting from Stephen Burrows [CEO of
Anheuser- Busch] on a court case in Germany about your "Original
Budweiser" campaign. He asserts that all of Budvar's ingredients are not
from the region. But you are one of the few Czech breweries that make it
a point of using only Czech malt and hops….

A: Understandably, Anheuser-Busch does not like that we not only have a
trademark but that we also have a geographic indicator of origin. And
they can't come close to that — unless they wanted to make a St. Louis
Beer. If you want to have this [indicator], there has to be a specific
character to the manufacture, raw ingredients, human capital, and
tradition. But Mr. Burrows says we do not use hops and malt as they come
from a different region — not directly from [the city of] Ceske
Budejovice. But we do use Moravian malt from the region around Olomouc
and Prerov and Zatec hops. We need to say that beer is at least 94%
water. And the water — we actually take it from Budejovice.

The water from this region is really original, given its trace elements.
Water can be chemically altered, but it will never be like the original.
For example, if you took water from Munich, and chemically altered it so
it was identical to Budejovice water, it would still never have the same
taste. And this is something that Anheuser-Busch likes to forget,
especially Mr. Burrows. Another element is the human capital, the
know-how and tradition — the craft of brewing beer. In Ceske Budejovice,
this began in the 13th century. Around that time, Indians were going
around Missouri bare-assed — and they were not making beer. For
Anheuser-Busch, this tradition began in 1872. And everything that was
before — they don't know.

Q: So for this reason, you would completely resist the idea of making
your Budweiser in, say, Finland or China. Everything must be made in
Ceske Budejovice?

A: There is a guarantee for the customer in that the beer comes from
that place that it is named for. This is important. If you have a
geographic indicator, in the law it must be that way.

Q: Anheuser-Busch will probably sponsor the Premier League in England
for GBP 20 million. This is far bigger than your advertising budget. How
will you compete?

A: We have our own budget for advertisements, and our beer is still seen
in our ads as a premium Czech lager. We don't want to compare our beer
to theirs, or to be a parasite. We are trying to separate the Czech and
American beer.

Q: Are you doing direct comparisons as to which beer has a better taste?

A: Our goal is not to have a taste comparison so that we can put into
the press that we won. I think this is something that the consumer
should do alone. But for us it is quite agreeable when a comparison is
done by a neutral party. For example, the World Football Championships
in 2000. A group of English reporters did a humorous test, they bought
beer and tested it according to the playoff schedule. To the finals went
an Italian beer and us — and we won. In football no, but beer, yes.

Q: With the battle between you and Anheuser-Busch, do you foresee any
new movement, or is it the same song and another verse. Do you see a
changing strategy?

A: The relation between Anheuser-Busch and Budvar looks like a sine
curve. It started in 1911 at the moment when our brewery agreed to let
Anheuser-Busch use the Budweiser name in the territory of the United
States, but not Europe. The goal of the agreement was that we would have
exclusivity in Europe and then co-existence in the rest of the world. It
was fair and understandable. In 1939, there was an arrogant step by
Anheuser-Busch against our brewery. In that year, [the Czech Republic]
was occupied by the German army. Anheuser-Busch had a one-way demand …
they required that our predecessors sign under duress a contract that
allowed Anheuser-Busch to sell their beer exclusively in the world
except Europe. Our predecessors did not sign this agreement, but they
signed that they would not use the Budweiser name from the Panama Canal
up to Canada. Afterwards, there was relative peace as it was World War
II.

In the '60s there were "friendly meetings" in which Anheuser-Busch got
more of our rights. Then came the big court battle in the 1970s in Great
Britain. That was an enemy act on the side of Anheuser-Busch that ended
in that both sides could use the trademark Budweiser in Great Britain.

A new situation began with the Uruguay Round of the GATT agreement. The
TRIPS agreement was formalized in 1992 and 1993, and countries that
signed that agreement in their national legislation had to ensure the
protection of geographic indicators.

Anheuser-Busch does not want that to be. They make the argument that the
same beer can be made wherever in the world. And that is not true.
Comparative testing and analysis show that the same brand of beer made
in Thailand or Europe or somewhere else has only the same label.

Due to that new article in 1993, the position was strengthened for Ceske
Budejovice, not only like a trademark but as a geographic indicator.
Anheuser-Busch wanted to eliminate this and began the third [round of
trademark agreement talks]. These meetings between Anheuser-Busch and
Budvar began in 1986 and went on to 1996. During this whole period, they
did not stop presenting [the proposals], 'Let's divide the territory,
divide the trademark.'

No one spoke much about geographic indicators. Then came the political
changes. In 1994, [the Czech Republic] received TRIPS and ratified it.
Then we realized that this was the main purpose of the agreements, that
we would not use the words Budejovicky, Ceske Budejovice, Budweis,
Budweiser, Budiwoyz — the old Latin title for Ceske Budejovice. Once we
realized this in 1996, under no circumstances would we sign. In 1996,
then Minister of Agriculture Lux noted that the meeting had ended not
only on trademarks, but also ended meetings on the privatization of a
strategic share in Budvar.

From this period, Anheuser-Busch started taking a hostile stance,
basically, that if we did not agree [with them] on our own free will,
then it would be a litigious path. From 1996, the number of court cases
have widened and it is now above 40. We were mainly on the defensive,
and now we are going more on the offensive.

Q: Was there an attempt in the last TRIPs meeting to enhance or widen
the protection of geographic indicators?

A: Article 22 in the TRIPS agreement speaks of wine, cognac and
distillates, but beer is not really there. In Seattle 1994 or 1995, an
activity was initiated ... [so] that beer would be added to article 23.
India was also lobbying to add tea. Other countries, such as Australia
or the U.S. — which have a short history of production — were not
interested. France wanted to protect its agriculture while the U.S.
defended against, for example, Budejovice beer.

Q: Do you think there is one perspective on this in the EU?

A: In the EU, there are states that have a well-developed system of
protecting geographic indicators — France, Portugal, Greece, Italy. Then
there are other states such as Great Britain that did not have any
system for protecting Scotch whisky or who knows what. Northern states
do not have anything like this. So that in the framework of the EU,
besides that of the TRIPS agreement, there are directives that protect
geographic indicators. It is interesting that from this directive passed
in 1995-6, it is possible for members to register geographic indicators.
If you look at the register, you will see not only Budweiser beer, but
Newcastle beer — basically firms that did not know for a long time the
concept of geographic indicators have begun to protect their beer from
its point of origin. This is at the beginning, from the point of view of
breweries, as it is a conservative branch.

The globalization trend, that beer at one side of the world might be the
same as on the other, is not for customers that hold the philosophy,
like one would say in German, das bier muss heimat haben, the beer has
to have a home.

If you go the U.S., which is a relatively sophisticated market, in the
'80s the market was so concentrated, that four companies had, say almost
100% of the market. But in the '80s a reaction began: microbreweries.
Basically, consumers began to prefer this beer over the big four. If you
do a blind test on the big four, it is very difficult to distinguish
between them. Then the microbrewery products have a completely different
taste.

Q: But here you have people who might be classified as connoisseurs and
others who just want cheaper beer….

A: Those people are everywhere. If you look at our exports, it is for
the trademark-conscious: They buy a trademark and do not care whether it
costs a Deutsche mark more or less. That is our customer profile.

http://nt.excite.com/ntd.dcg?page=show&topic=beer

AG: State can't block beer sales

The Associated Press 17 February

Nebraska has little authority to block beer sales from stores in
Whiteclay to Natives from the Pine Ridge Indian Reservation across the
border in South Dakota, according to a Nebraska attorney general's
opinion released Thursday.
The opinion was requested by the state Liquor Control Commission after
the advocacy group Nebraskans for Peace and the Oglala Lakota tribe
complained that four stores in Whiteclay sell millions of cans of beer
annually -- mostly to residents of the Pine Ridge.

Alcohol sales are banned on the reservation, a 5,000-square-mile expanse
that is home to 15,000 Oglala Lakota and one of the nation's highest
alcoholism-related mortality rates.

And more than a hundred years ago, alcohol sales were banned within 50
miles of the reservation. Just before President Clinton left office last
month, two former U.S. senators asked him to reinstate the ban. The
request by former Sens. George McGovern and James Abourezk of South
Dakota drew no response from the outgoing president.

In 1882 Valentine McGillicuddy, government agent for the reservation,
persuaded President Chester B. Arthur to create a buffer zone of 50
miles around the reservation to combat the "whiskey peddlers," Abourezk
said. Congress made the executive order a law in 1889.

In 1904, however, President Teddy Roosevelt put the buffer zone back in
the public domain. Abourezk said he believes Roosevelt's executive order
was issued unlawfully and wanted Clinton to overrule the action.

The Oglala and Abourezk have said they are considering filing a federal
lawsuit over the issue.

Nebraska liquor licenses can be revoked if alcohol-related crimes are
routinely committed in the licensed establishment or "in adjacent
outdoor areas," according to commission rules.

The rules, however, do not define what constitutes an adjacent outdoor
area. Natives have been photographed drinking on Whiteclay streets.

"Neither the Nebraska statutes nor the Nebraska Supreme Court precedent
recognize any authority . . . to suspend, cancel, or revoke a liquor
license if a customer commits an unlawful act after leaving the licensed
premises," wrote Assistant Attorney General Laurie Smith Camp.

The commission cannot "take action against a licensee who sells
alcoholic beverages to a sober customer over the age of 21, for
consumption off the premises, when that customer later consumes the
beverages in an unlawful manner or commits other offenses away from the
licensed premises," Smith Camp said.

Oglala Tribal Chairman John Yellow Bird Steele was not in his office
Thursday and could not be reached to comment.

Tim Rinne, state coordinator of Nebraskans for Peace, said the opinion
did not surprise him.

"The opinion does not deal with the responsibility of liquor dealers. It
only deals with the commission's powers," he said. "And accordingly, if
I was an official of the state of Nebraska, I would not be lulled into
complacency based on this opinion."

Gov. Mike Johanns pledged Monday to increase police patrols in Whiteclay
and to hold a summit on the issue. Johanns and other officials have
stressed that there is nothing they can do to stop licensed
establishments from selling alcohol unless violations of the law are
found.

The current holders of liquor licenses for the four Whiteclay stores
have had only five liquor law violations since 1992, according to
commission records.

http://inq.philly.com:80/content/inquirer/2001/02/17/city/PSCHMIDT17.htm

A race against wrecking ball to save Schmidt's brew house

The brew house is about all that remains at the 14-acre Schmidt's site,
at Second Street and Girard Avenue. (Charles Fox/Inquirer)

By Linda K. Harris INQUIRER STAFF WRITER 17 February

They gathered Thursday night at Dan McShane's new watering hole at
Fourth and Girard, but not to hang out at the bar.

Armed with posters, candles, and the thick, frothy neighborhood spirit
typical of Northern Liberties, about 20 community activists listened to
rallying calls of words and music before stepping onto the sidewalk
along sleet-sprinkled Girard Avenue.

Their mission: to rally support to halt the strip-mall-style development
at the old C. Schmidt & Sons Brewery just two blocks away at Second
Street.

Specifically, they want to save the Schmidt's brew house from the
wrecking ball that was considered a godsend for the 52 other properties
on the former brewery's 14-acre site at the northern edge of the
Liberties. Those who gathered still hope to accomplish that - even
though developer Bart Blatstein already has a demolition permit signed,
sealed and delivered.

McShane, 36, who bought the Philadelphia Bar & Grill in April, is just
one of the new energetic entrepreneurs in this diverse neighborhood. On
the wall of a room behind the bar, McShane has posted research from
Timothy McDonald, 36, an architect who put together a history of the
brew house.

"It's like a baroque theater inside," McDonald said of the building.
"It's stunning, absolutely stunning."

David Gleeson, 38, who sits on the Urban Development Committee of the
Northern Liberties Neighbors Association, presided over the gathering.

"Time is the main problem here," he said, citing the demolition permit.
"The whole vibe would be so different if we could just get over this
hurdle."

Gleeson said he wanted the building restored and made available as
rental property. He said he had spoken with Blatstein on Wednesday, but
had failed to convince him that the brew house, completed in 1914 as one
of the last works of Philadelphia architect Otto C. Wolf, was worth a
reprieve.

Yesterday, Blatstein said by phone that he was sensitive to
architectural worthiness. But it was not the brew house he had in mind.

"The building I think worthy of saving because of its architectural
significance is the former Boone School, and that's being saved," he
said. Blatstein is planning to rehab the historic art-deco school into
apartments.

Sharif T. Street, 26, the mayor's son and a lawyer who is living in
Northern Liberties while renovating a house just north of Girard, told
the crowd that even if the brew house could not be saved, the
neighborhood could influence what was to be built.

"A community that can organize and get people out eventually can have
its way," Street said. "I hope we stay organized and engaged."

A little more than a year ago, just after Blatstein bought the decayed
empire of Christian Schmidt at auction for $1.8 million, he told a large
crowd at the Northern Liberties Neighbors Association that "we know what
we want do do here. We want to build a shopping center. It's going to be
a community shopping center."

He invited community members to make suggestions. One idea was to turn
the site into a baseball stadium. That proposal failed to win support in
City Hall.

Meanwhile, Blatstein has applied for a low-interest $6 million loan from
the American Street Financial Services Center for his development, said
Elvin Padilla, a member of the center's board. The center was initiated
and partly funded by the federal money given to the American Street
Empowerment Zone.

Councilman Frank DiCicco helped arrange an additional $8 million through
a tax-subsidized loan from the city's Tax Incremental Financing program.

Padilla, who lives in Northern Liberties, said he thought the
suburban-mall approach was all wrong.

"I think a lot of folks are looking at bringing in a mall as a great
leap forward," he said. "I think that's really sad and doesn't recognize
what other measures of quality life are: art, people and neighborhood.'

Teri Youngblut, executive director of the Northern Liberties Neighbors
Association, said no final decisions on the development had been made.

"Bart doesn't have a signed lease with anyone," she said yesterday.

Youngblut said she believed Blatstein was willing to create space for
lots of small shops at the site.

"Bart has said he is willing to look at that," she said, "but he's got
to get that key tenant before he can do anything."

http://news.excite.com/news/r/010217/09/odd-life-sexchange

San Francisco to fund sex changes for city workers

Cecilia Chung Poses Friday, Feb. 16, 2001, in San Francisco.

SAN FRANCISCO (Reuters) - San Francisco plans to become the first
U.S. city to finance sex change operations for city workers under its
health care benefits program, officials said Friday. The proposal, which is
expected to receive final approval from the city Board of Supervisors and
Mayor Willie Brown, would permit city employees
to claim up to $50,000 of the cost of sex reassignment surgery,
Supervisor Mark Leno said.

"This is a medically diagnosed condition -- gender identity disorder.
One does not enter in to this cavalierly. It really is a matter of equal
benefits for equal work," Leno said.

The change, which would go into effect July 1, would make San Francisco
the first U.S. city to partially finance sex changes for city workers.
The total cost for such surgery is estimated at about $37,000 for
male-to-female procedures, and about $77,000 for more complicated
female-to-male operations.

San Francisco currently has about a dozen "transgender" employees on its
municipal payroll. Officials estimate that as many as 35 city workers
might take advantage of the new benefit in the first year, costing about
$1.75 million.

San Francisco, known for its liberal social attitudes, passed a city law
in 1995 prohibiting discrimination based on gender identity in city
contracting. It has also passed a landmark ordinance requiring companies
doing business with the city to offer the same benefits to employees
with domestic partners -- either gay or straight -- as they do for
married employees.

Aqua Vie Beverage Corporation Files Legal Action

KETCHUM, Idaho--(BUSINESS WIRE)--Feb. 17, 2001--On Friday, February 16, 2001,
Aqua Vie Beverage Corporation (OTCBB:<A HREF="aol://4785:AVBC">AVBC</A>),
prompted by posts on the internet portal known as Raging Bull, initiated an
action in the Third Judicial District Court of Salt Lake County, State of Utah,
against defendants currently designated as John Does 1 through 10. When the
names of the defendants are ascertained, the Company will amend its complaint
accordingly.

The aforementioned action, which seeks, among other things, injunctive relief
and punitive damages, alleges, among other things, defamation and the
publication of injurious falsehoods regarding the Company and/or its officers,
directors and products.

Aqua Vie Beverage Corporation develops and markets all-natural, lightly
flavored, still (non-carbonated) bottled spring water. The company's
low-calorie alternative beverages are bacteria-free and contain no
preservatives. Aqua Vie produces and markets the Hydrator(TM) line of beverages
in the United States and Europe. This beverage line, comprised of seven
low-calorie, all-natural beverages that are lightly flavored and packaged in
half-liter bottles, is designed to increase one's personal consumption of
water, naturally. The underlying technology also serves as the delivery system
for Aqua Vie's new line of children's Hydrators(TM), PurePlay(TM), and Eau
Vin(TM), Aqua Vie's line of nonalcoholic wine and champagnes made from spring
water. For further information about Aqua Vie Beverage Corporation, visit the
company's web site at www.aquavie.com.

[Michael Shoshani]

On 18 Feb 2001 06:31:02 GMT, j2ju...@aol.com (J2jurado) wrote:

>FEB 7, 2001 - Illinois stout lovers are getting a head start on St.
>Patrick's Day as Guinness test markets selling "draught beer" in
>bottles.

I've been on a Scotch/Bourbon kick for a few months and haven't bought
beer since who knows when; but this past Friday I went to Binny's in
Skokie, IL and found the bottled Guinness Draught on the shelves.

Didn't go for it, since it's probably identical in flavor to the
canned product. I still like Extra Stout better; I noted that it is
still being sold...for now. Beamish is also available.

However, I was in the mood for a porter, not a stout, so picked up a
six-bottle pack of King and Barnes bottle-conditioned Old Porter.
Nice, if a bit bland. (Several K&Bs are on the shelves; I'm waiting to
see if we will get Worthington White Shield, or any of the Badger ales
brewed by K&B's parent company.)

Michael Shoshani
Chicago IL

"Life is an art, not a science;
You make it up as you go along." -Al Hirschfeld

[J2jurado]

De Vere Sells Five Outlets for 2.5 Mln Pounds to Beer Seller

Warrington, England, Feb. 19 (Bloomberg) -- De Vere Group Plc, a U.K. hotel
owner, said its wholesale business, Tavern Group Ltd., sold five outlets to The
Beer Seller Ltd. for about 2.5 million pounds ($3.62 million).

The purchase by Beer Seller, a unit of H.P. Bulmer Holdings Plc, includes
stock, debt and property leaseholds and the transfer of 125 employees, the
company said in a statement distributed by the U.K. Regulatory News Service.

The five outlets account for more than 20 percent of De Vere's Tavern Group
unit and discussions are underway regarding the sale of the remaining business,
the company said.

De Vere said in December it was unloading Tavern. The company is following the
lead of larger rivals such as Bass Plc and Whitbread Plc in focusing on the
hotel and health and fitness markets.

De Vere's shares fell as much as 0.90 pence, 1.4 percent, to 63.6p. The stock
has gained 45 percent in 12 months.

Baltika Breweries Plans to Purchase Two Siberian Rivals in 2001

St. Petersburg, Russia, Feb. 19 (Bloomberg) -- OAO Baltika Breweries, Eastern
Europe's largest brewer by volume, said it plans to buy two beer producers in
Siberia this year to make up for an expected decline in sales in western
Russia.

Baltika, run by Finland's Hartwall Oyj and Denmark's Carlsberg S/A, last year
boosted its share of Russia's beer market to 20 percent from 15 percent partly
by buying into existing breweries and modernizing them to expand production,
the company said.

Russians drank a third more beer last year than in 1995, with per-capita beer
consumption now at 25 liters per person, according to Russian market researcher
Business Analytica. By comparison, Western Europeans drink an average of 80 to
100 liters per year.

``We are now planning to buy two breweries east of the Ural mountains, and are
already negotiating with some,'' said Baltika spokeswoman Ludmila Fomicheva,
without naming which rivals the company would seek. ``The main issues are price
and the amount that would need to be invested in any brewery we purchase.''

Baltika expects slower growth in demand this year after it raised beer
production 63 percent in 2000.

The company complained that the market in central Russia is becoming saturated
and the government is hindering the growth of the nation's beer industry by
increasing taxes on beer and instituting health standards that discourage
consumption.

Baltika made 1.1 billion liters of beer in 2000, up from 655 million liters in
1999, after investing $80 million last year to modernize production. It will
spend $100 million this year to expand its distribution network in Central
Russia and the Ural Mountains and cut operating costs.

The company would not comment on its financial performance for 2000 until its
annual shareholders' meeting in March. It is expected to report net income rose
to almost $83.4 million from $48.2 million in the previous year, according to a
report by Alfa Bank.

St. Petersburg-based Baltika is 73 percent owned by Baltic Beverages Holdings,
a 50-50 joint venture between Hartwall and Carlsberg.

Beermaker Earnings Fall as Japanese Mix Their Drinks

Tokyo, Feb. 19 (Koichi)-- Japan's largest beermakers, already struggling to
maintain profit amid a decade of economic stagnation, now face a growing
challenge from canned cocktails and other nonbeer drinks.

Kirin Brewery Co., Japan's No. 1 brewer, will fall short of its group profit
projection for the six months ended Dec. 31 when it releases 2000 earnings
tomorrow, analysts said. Asahi Breweries Ltd. and Sapporo Breweries Ltd.,
Kirin's two biggest rivals, are expected to report profit declines from
year-earlier levels later this week.

Part of the problem for Japan's beermakers, which last year saw a 0.7 percent
decline in shipments, is that consumers are being wooed by a growing number of
other alcoholic beverages. The increased competition comes at a time when
Japan's household spending has declined for seven straight years, cutting into
sales of beermakers' most expensive brews.

``Nonbeer alcoholic drinks are taking more shelf space at convenience stores
and other retailers,'' said Yuta Kenmei, an analyst with Marusan Securities Co.
``Beer itself is not a product that will grow in sales like other alcoholic
drinks.''

Among the products eating into beer sales is ``shochu,'' a low-priced alcohol
distilled from potatoes or wheat. Long popular at Japanese pubs, shochu mixed
with tonic water or lemon is gaining popularity as a prepackaged cocktail.

Low-Malts

Beermakers have tried to battle back with low-malt brews, which are about
one-third cheaper than regular beer because they are taxed at a lower rate.
Sales of these so-called ``happoshu'' beers have not grown enough to offset the
decline in regular beers, and the tax advantage could be taken away by Japanese
lawmakers as soon as next year.

Kirin boasts Japan's top-selling happoshu beer, ``Tanrei,'' introduced three
years ago. Tanrei sales have not grown fast enough to make up for a decline in
sales of Kirin's flagship ``Lager'' brand, partly because the new product has
taken customers away from Kirin's regular beers, analysts said.

Kirin will post implied group net income of 14.3 billion yen ($122.6 million)
for the six months ended Dec. 31, according to the average estimate of six
analysts polled by Bloomberg News. That compares with the company's latest
implied second-half estimate of 16.5 billion yen, which was lowered in August
from 20.5 billion yen.

Profits Decline

The companies don't break out second-half numbers in their earnings reports and
projections. The implied estimates are derived by subtracting first-half
earnings from full-year estimates.

If the analysts are right about Kirin, the Tokyo-based company will wind up
2000 with a full-year group profit of 31.8 billion yen, down from 33.2 billion
a year earlier.

The company projected full-year revenue of 1.6 trillion yen, up from 1.45
trillion in 1999. Analysts polled by Bloomberg estimated full-year revenue of
1.57 trillion yen, on average.

Japan's second-largest beermaker, Asahi, is expected to meet its latest
projection of an implied group loss of 4.14 billion yen, according to four
analysts surveyed. The company's projection, made in October, included a
one-time charge to account for pension-fund shortfalls.

Asahi's current profit, or net income before taxes and one- time charges and
gains, is expected to total 15 billion yen, down from 74 billion in 1999.
Analysts agreed with the company's revenue projection of 757 billion yen in the
second half of 2000 and 1.4 trillion yen for the full year, which would match
1999's total.

Summer Boost

Tokyo-based Asahi, maker of Japan's top-selling ``Super Dry'' brand, is
scheduled to report earnings Wednesday.

Japan's No. 3 beermaker, Sapporo, which didn't report first- half earnings on a
group basis, lowered its full-year projection in November, predicting group
profit of 1 billion yen. That would be down from 4.4 billion a year earlier and
down from an earlier 2000 projection of 6.5 billion yen.

Tokyo-based Sapporo, which cited falling beer demand and accounting changes in
revising its profit projection, projected a 2.3 percent decline in sales, to
560 billion yen in 2000 from 572.9 billion a year earlier.

Sapporo is slated to release its earnings on Friday.

A hot summer helped Japan's beermakers post an uptick in sales last July and
August. The industry was unable to sustain the recovery throughout the second
half, resulting in a second straight annual decline in overall shipments.

Now Comes Chuhai

``Each company failed to achieve their target in the period,'' said Naomi
Takagi, an analyst with HSBC Securities Japan Ltd. who rates Kirin ``hold'' and
Asahi ``add.''

One bright spot was privately held Suntory Ltd., Japan's fourth-biggest
beermaker. The company on Friday reported a 54 percent increase in 2000 group
net income, to 13.9 billion yen, even after 31 billion yen in pension-fund
liabilities and other charges.

Suntory's revenue grew 8.4 percent from 1999 levels, to 1.4 trillion yen,
thanks largely to a doubling of sales of ``Magnum Dry,'' Japan's No. 2 low-malt
beer brand.

Suntory also benefited from strong sales of its sake products and low-alcohol
cocktails, such as canned ``chuhai,'' a mix of potato-distilled shochu and
tonic water. Sales of Suntory's ``Super Chuhai'' brand were especially strong,
the company said.

Japanese consumers, young adults in particular, increasingly are drinking
chuhai and other nonbeer beverages, analysts said.

Low-Malt Competition

At Watami Food Service Co., a Tokyo-based chain of pub-style restaurants, sales
of cocktails, such as Kahlua with milk, doubled last year, said Takayuki
Yoshida, a managing director in the company's merchandising division.

In the past, Yoshida said, customers would order beer for their first drink or
two, then, in some cases, switch to something else. ``Now, women are starting
off with a cocktail or a sour,'' he said.

Asahi, the last of the major Japanese beermakers to introduce a low-malt beer,
hopes to capitalize on the growing happoshu market. The company's new
Honnama-brand low-malt brew goes on sale Wednesday.

The low-malt segment now accounts for 22 percent of Japan's beer sales, up from
19 percent in 1999. Asahi's milder-tasting Honnama threatens to take customers
away from the company's flagship brand, whose growth already is slowing,
analysts said.

`Turning Point'

Now ``is the turning point for Asahi,'' said HSBC's Takagi. ``The problem is,
if the company should sell too much Honnama, it won't be able to sell what it
really wants to sell (Super Dry).''

That's what happened to Kirin when it introduced its low-malt Tanrei brand in
1998, which siphoned sales away from Lager and other regular beers.

Kirin and Sapporo will lose low-malt sales to Asahi, even as their own low-malt
brands are taking market share away from their traditional beers, analysts
said.

``Even if Asahi didn't enter the happoshu market, things are tough for Kirin
amid expected slow growth in the market this year,'' said Kenmei, the Marusan
analyst. ``It will suffer further if Asahi enters the market and the new
product is successful.''

Japan's government may begin raising taxes on happoshu as early as April 2002,
eventually closing the tax-rate gap between low-malt and regular beers.

Last year, the Finance Ministry proposed such an increase. The plan, opposed by
beermakers, was later tabled.

Currently, Japan's tax on a 350-mililiter can of happoshu is 36.75 yen, versus
77.7 yen for regular beer. If and when that difference is eliminated, analysts
expect sales of low-malt beer to fall.

``Demand for happoshu will substantially shift into (regular) beer,'' said
Shuichi Shibanuma, an analyst with Credit Suisse First Boston.

Japan's beermakers can only hope demand doesn't also shift to other beverages.

Bulgarian Vintners Ask Government to Help Dust Off Wine Image

Sofia, Feb. 19 (Bloomberg) -- A decade of neglect has tarnished the image of
Bulgarian wines, once some of the finest in Eastern Europe. Now the country's
largest vintners, such as Boyar Estates SA, want the government to help polish
it.

Bulgarian vineyards have withered since the end of communist rule, when state
farms were dismantled and the land returned to original owners. With many
owners lacking the cash to tend the vines, the quality and quantity of the
grapes fell, as did sales.

Wine exports to the European Union almost halved between 1998 and 2000, while
sales to the former Soviet Union plunged 85 percent. To stop this slide, wine
producers and the Agricultural Ministry plan to set up a fund to finance market
research and advertising.

``There is no time to waste,'' said Margarit Todorov, chief executive of Boyar,
Bulgaria's largest wine maker. ``We need a world-renowned brand.''

That won't come cheap. Boyar's investment of $61 million in the last 10 years
is a fraction of the $1 billion Todrov reckons is needed if Bulgaria wants to
produce wines that can at least match the quality and consistency of
California's E & J Gallo Winery.

Bulgaria isn't alone. Exports from other wine producing countries in the
region, such as Hungary, also are falling as consumers in Europe reach for
bottles from Australia, South America and the U.S., which offer better quality
at similar prices.

``Now that there is a wider selection of world wines, I'm checking them out,''
said Tony Macqueen, a 29-year-old information technology specialist at
Prudential-Bache Ltd. in London. The ``Bulgarian wine disappointed me, but the
Australian didn't, and I'm sticking with that for the moment.''

Exports Fall

Bulgarian wine exports fell 36 percent to $81 million in 1999 from $127 million
in 1998, while Hungary's exports fell 17 percent in 1999 to $84.5 million from
$101.5 million a year earlier.

Overall Bulgarian exports totaled $3.96 billion last year.

It's not just a question of attracting foreign drinkers, vintners also need to
win over Bulgarian beer drinkers.

Last year, Bulgarians bought 20 million liters of wine, or about 3 liters per
person, compared to 49 liters of beer per person, according to government and
Bulgarian brewer's association.

``The situation can be changed if the wine sold is cheaper and better,'' said
Kiril Popov, chairman of the Agricultural Ministry's Vines and Wine Agency.

To do that, Bulgaria needs to plant new, higher quality and more productive
vines. While the country had 160,000 hectares of vines at the end of last year,
63 percent are more than 20 years old and many need replacing, according to the
Vines and Wine Agency.

Bulgaria produced 350,000 tons of grapes last year, 30 percent less than in the
mid-1990s and less than half the amount the country's wineries need to operate
at full capacity.

Even that may be too much, if sales don't pick up.

``For the first time last year, the supply of grapes exceeded demand,'' said
Todorov. ``But when you lose markets, you don't need grapes.''

Diageo Seen Posting 7.3% Increase in First-Half Profit

London, Feb. 19 (Bloomberg) -- The following is a summary of fiscal
first-half earnings expectations for Diageo Plc, the largest liquor company.
Expected Earnings Pretax profit is expected to rise 7.3 percent to 1.17
billion pounds ($1.70 million), or 24.8 pence a share, for the six months to
Dec. 31 from 1.09 billion pounds, or 22.5 pence a share in the year-earlier
period, according to the average of six analysts surveyed by Bloomberg News.
Forecasts ranged from 1.15 billion pounds to 1.20 billion pounds. The
company's dividend is seen at about 9 pence a share compared with 8.4 pence
last year. Time The company will report earnings Thursday, Feb. 22 at
about 7:00 a.m. London time. Behind the Numbers Diageo's nine best-known
liquor brands, which include Johnny Walker Scotch whisky and Smirnoff vodka,
have been fueling growth in both sales and profits. As a result, the
London-based company announced plans last year to sell its Pillsbury food unit
to General Mills Inc. and to hold an initial public share sale for its Burger
King fast-food chain. Burger King may particularly weigh on profits because
of slow sales growth: Sales in restaurants open longer than a year are expected
to drop about 2 percent, analysts said. Analysts are also watching for
signs that weakening U.S. consumer confidence may cut demand for premium liquor
brands in the U.S., which has helped drive worldwide sales growth. The world's
largest economy expanded at its slowest rate in five and a half years in the
fourth quarter. In a bid to keep liquor sales volumes rising, Diageo
agreed in December to buy Seagram Co. with France's Pernod Ricard SA for $8.15
billion. Diageo will pay $5 billion of that sum to gain top brands such as
Crown Royal whisky. Diageo and Pernod hope antitrust regulators will approve
the takeover by April 1. Analysts will also look for an update on a dispute
between Allied Domecq Plc and Diageo over the ownership of Captain Morgan rum,
also sold in the Seagram auction. Allied is claiming right of first refusal to
the Captain Morgan brand as part of an agreement formed with Disteleria
Serralles, which supplies rum to Seagram. The case is currently being
considered by a judge in Puerto Rico. What the Experts Say ``People will
be looking for a little more flesh on Seagram,'' said Alan Gray, an analyst at
ING Barings who has a ``hold'' recommendation on Diageo. ``You can't divorce
Diageo's prospects from the U.S. economy. The U.S. has been a good market
recently so a slowdown could have an impact, so you have to be a wee bit
cautious.'' ``They've had a strong Christmas season, which will be leading
growth,'' said Andrew Gowen, an analyst at Lehman Brothers who has an
``underperform'' rating on the stock. ``In particular, the global spirits
brands will have performed well.'' Market Performance Diageo shares have
gained 32 percent in the past year compared with a 10 percent decline for the
Dow Jones Euro Stoxx 50 Index to which it belongs. Allied Domecq Plc, the
second-largest wine and spirits company, has gained 64 percent over the last 12
months. Estimates The following are estimates for Diageo's fiscal 2000
earnings. They include earnings per share (fully diluted, in pence per share)
and profit before tax (in billions of pounds). All figures are before goodwill
and exceptional items. EPS Pretax Merrill
24.8p 1.18 billion pounds Goldman 25p
1.19 billion pounds HSBC 24.9p 1.20 billion pounds
Williams de Broe n/a 1.15 billion pounds Deutsche Bank n/a
1.17 billion pounds ING Barings n/a 1.15 billion
pounds J.P. Morgan 25p 1.18 billion pounds Credit Suisse
24.2p 1.17 billion pounds AVERAGE 24.8p 1.17
billion pounds

Japanese ministry used slush funds to buy wine

TOKYO, Feb 18 (Reuters) - Japan's scandal-tainted foreign ministry used
so-called "secret diplomacy funds" to buy some of France's best wines when cash
was left over in its budget at the end of the year, the daily Asahi Shimbun
said on Sunday.

The newspaper said the ministry even circulated a manual on how to make sure no
funds went unspent, instructing Japanese embassies abroad to wire back budget
surpluses to Tokyo headquarters.

The money would then end up in Paris, where embassy staff bought wines with
price tags of several thousand dollars a bottle and shipped them back to Tokyo
to be served at parties for foreign dignitaries and Japanese citizens, the
newspaper said, citing ministry sources.

Foreign Ministry officials were not immediately available for comment.

The ministry's secret diplomacy funds are intended to cover expenses for
overseas trips by prime ministers and other top officials as well as diplomatic
activities including espionage.

The funds have come under fire after reports a rogue diplomat may have used
millions of dollars from it to buy more than a dozen racehorses, golf club
memberships and a pricey condominium in central Tokyo.

Malibu Rum Spices it up at VolleyPalooza 2001

Malibu Rum Proudly Presents the Annual Nearly Naked Model Volleyball Tournament
on Miami's South Beach

MIAMI, Feb. 19 /PRNewswire/ -- Sand, sweat and sumptuous bodies...it's what
South Beach is known for worldwide.

To celebrate the beauty and energy of South Beach, Malibu Caribbean Rum is
joining some of the biggest names in fashion modeling as the presenting sponsor
for this year's annual Ocean Drive Magazine VolleyPalooza(R) Nearly Naked Model
Volleyball tournament. This two-day, three night, star-studded volleyball
tournament is held on the beautiful beaches along Ocean Drive in Miami. The
event combines competition and fun as attendees rub elbows with the bold and
the beautiful models to benefit local charities.

VolleyPalooza Nearly Naked kicks off the weekend on Friday, February 23, with a
VIP dinner for players and celebrity guests at the official kick-off party at
The Living Room. The fun continues as the two-day competition begins on
Saturday morning with teams from 20 different modeling agencies battling it out
on the sand to claim the championship title. Each team competes for a cash
prize, which will be donated to the charity of their choice, and the winning
team receives an all expenses paid trip to Our Lucaya.

"Malibu's sponsorship of VolleyPalooza Nearly Naked fits perfectly with the
brand's seriously easy going image," says Barry Sheridan, Director of
Marketing, UDV -- Malibu Rum. "We couldn't pass up the opportunity to be a
part of the fun, sun and music that's all a part of VolleyPalooza."

Entertainment throughout VolleyPalooza Nearly naked includes a special
performance by Interscope recording artist Mya and MCA recording artists Soul
Decision along with cocktails with Malibu Rum. Throughout the weekend at the
Malibu Rum tent, spectators and participants will be given chances to record
their favorite songs in the Malibu Rum Loud & Clear recording studio and win
VIP passes to all VolleyPalooza Nearly Naked parties as well as other great
prizes. The weekend ends with the VolleyPalooza Nearly Naked Wrap-Up Party on
Sunday, February 25, at Nikki Beach to thank all players, sponsors and
partygoers for another great year.

UDV North America is a subsidiary of United Distillers & Vintners, the world's
largest and most profitable spirits and wines company and a subsidiary of
Diageo PLC, London.

UDV North America produces, imports and markets a range of premium brands,
including spirits such as Smirnoff Vodka, Jose Cuervo Tequila, Baileys Original
Irish Cream, Gordon's Gin, T.G.I. Friday's Frozen Drinks, and leading wines
such as Beaulieu Vineyard and Glen Ellen.

Japanese Rail Company to Raffle Off Train via New Web Site

Aichi, Japan Feb. 18 (Bloomberg) -- A Japanese rail company is looking to
raffle off a soon-to-be retired electric train.

Toyohashi Railroad Co. in Aichi prefecture, about 300 kilometers west of Tokyo,
will give away in a drawing one of its 7300 series local trains as the company
kicks off its Internet shopping mall, the company said on it Web site.

Company officials were not immediately available for comment, although an
earlier report in The Japan Times said about 50 people have already registered
for the chance to win the 18-meter, 37-ton train.

The winner will have to foot the estimated 3 million yen ($25,000) bill for
moving the locomotive and four cars within the local area, according to the
report.

Deadline for applications is March 31.

Forced marriage Legal, needs to be annulled

February 18 ALBUQUERQUE, N.M. - An Albuquerque man faceS felony charges for
allegedly kidnapping his ex-girlfriend with an ice pick and forcing her to
marry him on Valentine's Day, according to court records.

Robert Tellez, 36, was being held in lieu of $100,000 bond after being
arraigned on seven different charges, including domestic violence, kidnapping
and extortion.

His ex-girlfriend told police that Tellez broke into her apartment armed with
an ice pick and threatened to kill her and her two young children if she did
not go with him.

He allegedly kept her prisoner in his sport utility vehicle through the night
and then drove to an Albuquerque theater where the two took part in a special
Valentine's Day wedding ceremony for about 100 couples.

According to a criminal complaint in the case, the wedding judge asked the
woman on several occasions during the ceremony if she wanted to go through with
the marriage.

"She told the judge it was (what she wanted to do), but later told me that she
feared that she could not really say that she didn't want to get married,"
Albuquerque Police Det. V.A. Trevino wrote in the complaint.

State District Court Judge James Blackmer, who approved the arrest warrant for
Tellez, said the woman can file a petition in state court to get the marriage
annulled.

[Brian Debenham]

In article <sl819tgs0qva416rg...@4ax.com>,

Michael Shoshani <sh0s...@home.com> wrote:
> However, I was in the mood for a porter, not a stout, so picked up a
> six-bottle pack of King and Barnes bottle-conditioned Old Porter.
> Nice, if a bit bland.
>

Certainly didn't use to be bland. Haven't tried it since Badger got
their grubby mitts on it though and it wouldn't surprise me if they'd
ruined it as their beers generally aren't up to much.

Brian

--
Brian Debenham
br...@bdebenham.co.uk
StrongARMed and dangerous !
Chelmsford CAMRA: http://www.chelmsfordcamra.org.uk/

[J2jurado]

Beer swills higher in Europe with wine in decline

STOCKHOLM, Feb 19 (Reuters) - Mediterranean wine-lovers are within a whisker of
losing their dubious title as Europe's heaviest drinkers to beer-swilling
northerners, a study for the World Health Organisation showed on Monday.

Wine drinkers like the French, Spanish and Italians have been cutting back
steadily since 1955, when their alcohol intake was almost triple that in beer
strongholds like Germany, Britain and Denmark.

Meanwhile by the turn of the century, beer drinkers were knocking back twice as
many pints as in 1955.

"The average difference between the beer- and wine-drinking countries in total
consumption now appears to be no more than a few decilitres of pure alcohol per
year," the WHO said in a statement.

Wine-drinking countries' consumption reached peaks of about 18 litres measured
in terms of pure alcohol in the late 1950s, when beer-drinkers were swilling
down little more than six litres. Both groups now drink about 12 litres of pure
alcohol a year.

The health message remained clear: "more is worse," the European Comparative
Alcohol Study found, with alcohol-related illness and death rising in most
countries where consumption rose.

Drinking more wine, beer or spirits in moderation had no beneficial effect on
heart disease at a population level, as some had believed, in any country for
any age group of men or women.

The scientists were quick to point out that this did not necessarily contradict
the "glass of red wine a day" adage quoted by some doctors and researchers,
because of complicated interactions in the way consumption changes across large
groups.

Dutch Equity Preview: Grolsch

Amsterdam, Feb. 19 (Bloomberg) - Royal Grolsch NV (GROLC NA): The Dutch beer
brewer known for its swing-top bottles may be active ahead of its earnings
report Wednesday. Grolsch is expected to say full-year profit rose 10 percent
to 26.7 million euros, or 1.57 euros a share, last year from 24.2 million
euros, or 1.43 euros, in 1999, according to the average estimate of five
analysts surveyed by Bloomberg News. In related news, consumption in the
brewery-local market has increased unexpectedly in January, and the trend looks
strong to continue. The shares rose 0.25 euro, or 1.1 percent, to 23.65 euros.

Colombia's Bavaria Shares Fall; Govt to End Strike

Bogota, Feb. 19 (Bloomberg) -- Shares of Bavaria SA, the beverage producer that
is also Colombia's largest listed company, fell after a government decision to
arbitrate contract negotiations to end a two-month-long strike.

Bavaria fell 1, or 0.02 percent, to 7,999 pesos on early trading on the
Medellin stock exchange. Traders said a fund sold Bavaria shares to take
advantage of a recent 19 percent jump in the stock. Some 4,400 shares changed
hands.

``The trading is light and nobody wants to offer Bavaria because news of the
arbitration is really positive,'' said Nicolas Quiceno, a trader with
Medellin-based brokerage Valores Pichincha SA. ``This is no more than
profit-taking.''

The government is to set up an arbitration panel this week to end the strike.
Analysts expect the panel to back the company on its wage raise proposal and
order workers back to their jobs.

Bavaria's 4,800 unionized workers went on strike Dec. 17, demanding raises of
25 percent and better pension and health benefits. The strike halted production
at the brewer's 18 plants nationwide, and has emptied store shelves of its beer
and malt brands.

Analysts expect an arbitration decision to favor the company because its offer
of a 15 percent raise in wages was well above last year's inflation of 8.75
percent. They say the company's proposal was generous, as most salaries in
private companies rose 10 percent or less this year.

The union said it wouldn't accept the ministry's proposal and would remain on
strike indefinitely. The cost of its demands is estimated at 530 billion pesos
($235.6 million), twice the cost of its wage demands in 1999.

Shares of Bavaria rose 19 percent in the past month from a 52- week low on
speculation the government would be forced to intervene to end the strike.

Higher Negotiation Power

Guerra said Bavaria's dominance of Colombia's $1.6 billion beer market helped
strengthen its negotiating position with the union. He also said alliances with
rival Cerveceria Leona SA and its Medellin-based subsidiary, Cerveceria Union
SA, have allowed the brewer to continue selling beer, despite of the strike.

``We are optimistic that arbitration will favor the company,'' said Alejandro
Guerra, a trader with Medellin-based brokerage Multivalores SA. ``Bavaria has
gained market share as well as negotiating power giving it an advantage in
potential situations like this.''

Bavaria has more than 90 percent of the Colombian beer market, after last
year's purchase of a 44.15 percent stake in ailing rival Cerveceria Leona SA.
Leona probably boosted production to meet a shortfall of beer during the
Christmas season and the first two months of this year, according to a report
by Santander Central Hispano Investment.

Guerra said the strike probably cost the company about 200 billion pesos in
lost revenue. Workers haven't been paid since the strike began, and the
government estimates the strike may have cost it $10 million in lost tax
revenue.

That, added to Colombia's unemployment rate of 19.7 percent, has put Labor
Minister Angelino Garzon, a former unionist, and the brewer's union in the
spotlight.

Some 800 non-unionized workers and more than 50,000 retailers nationwide have
filed suits claiming Garzon and Bavaria's union have been negligent in ending
the strike. The company has declined to comment on the strike.

``Certainly the demands for the union can be dubbed as `flamboyant','' Guerra
said. ``The fact that there are 1.5 million Colombians jobless has angered the
public over this strike.''

Dismissals on Hold

Under Colombian law, workers have to return to work on the panel is named and
management must refrain from dismissing workers until a decision is taken. If
the ministry declares the strike illegal, the company would be allowed to fire
employees.

The last time Bavaria faced a strike was in February 1996, when workers halted
work for 35 days. That stoppage cost the company about 40 billion pesos in lost
revenue.

Analysts have another reason to believe the stock will rise. The brewer has had
to close plants, sell off unprofitable subsidiaries and trim expenses in a bid
to stay competitive, as beer sales have remained stagnant.

Bavaria, whose third-quarter net income fell 14 percent to 98 billion pesos
from 113.7 billion pesos in the period a year earlier, laid off 300 workers in
April as it closed three small breweries.

Analysts say keep stocking up on healthy tobacco shares

Jessica Wohl

NAPLES, Fla., Feb 19 (Reuters) - Tobacco-related stocks are climbing in an
improving litigation environment and on the heels of strong earnings. But can
these gains continue?

Industry analysts think so, and view many of the stocks as buying
opportunities, especially top cigarette maker Philip Morris.

While the overall market remains in a slump, especially technology stocks,
shares of cigarette makers have climbed. The Standard & Poor's Tobacco index
<.SPTOBC>, which is comprised of nine tobacco-related companies, has climbed
more than 90 percent since January 2000, while the broader S&P 500 index <.SPX>
has slipped about 11 percent in the same period.

Analysts cite a variety of reasons for the tobacco climb, but all assert that
the improving legal climate is a main factor in the industry's success.

Tobacco stocks felt the heat of a tough litigation environment in the late
1990s and in 2000. A slew of legal woes hit the industry, most notably the
landmark Master Settlement Agreement, or MSA, signed with 48 U.S. states back
in 1998, the 1999 Department of Justice suit against the industry and the Engle
sick smokers jury verdict last year.

But the MSA payments have become part of the industry's overall landscape, two
of the three DOJ claims have been rejected, and analysts have repeatedly said
that they expect the $145 billion Engle verdict will be overturned on appeal.

"The outlook remains excellent," according to Morgan Stanley Dean Witter's
David Adelman. The industry has not lost any cases so far this year and
Adelman, among others, expects the legal environment to continue to improve
going forward.

"There are always going to be hiccups in the road," Credit Suisse First Boston
analyst Bonnie Herzog said, but the "trend line is positive regarding
litigation." She sees such "hiccups" as an opportunity to buy shares or add to
holdings.

Analysts also expect the new political climate to help tobacco.

George W. Bush's administration is expected to be more lenient on
tobacco-related issues, and major corporate issues in general, than Clinton's
was. Tobacco stocks have climbed since Bush's victory seemed imminent late last
year.

The charges in the DOJ suit under the Racketeer Influenced and Corrupt
Organizations (RICO) Act still remain, but Salomon Smith Barney's Martin
Feldman, for one, believes that with President Bush and Attorney General John
Ashcroft in power, the DOJ will "apply fewer resources to this claim." In a
research note, Feldman said the suit "may evaporate entirely" within a year or
two.

Plus, if Bush gets to appoint Supreme Court justices, they will likely be more
conservative than those that would have been appointed by a Democratic
president, and therefore more likely to side with corporate America.

Furthermore, under Bush's administration, "personal responsibility will have
greater resonance," Adelman noted, which is a key in many sick smoker claims.

But aren't such positives already built into the shares?

"I don't think fully, no," Adelman said, noting the companies' below average
valuations.

Ann Gurkin, tobacco analyst with Davenport & Co., also advises that holders
keep their tobacco shares. "The market's defensive right now," Gurkin said.
"They benefit from that sentiment."

Gurkin noted that valuations in the sector are still very low versus the market
multiple and that the litigation cloud is lifting.

"That's certainly a positive for the group," she said.

As Adelman noted, investors didn't panic and shed all of their tobacco stocks
when cases first started to pile up. He said that as it took time for the
litigation to really hurt the shares, it would likely take time for the easing
legal climate to play out in the market.

"We would argue that there is still significant upside potential from current
levels," Feldman said last week. "Despite this recent strong share price
performances we would not reduce weightings."

OUTLOOK STRONG FOR PHILIP MORRIS

Herzog continues to recommend that investors buy Philip Morris Cos Inc. <<A
HREF="aol://4785:MO">MO.N</A>>, her top pick, which has roughly doubled since
the beginning of 2000.

Herzog said she would "continue to own the stocks, if not to buy more,"
referring to shares of tobacco-related companies in general, given "the ever
improving litigation and political environment."

She argues that several catalysts will boost shares of Philip Morris in the
near term, most notably the company's planned initial public offering for part
of its Kraft Foods unit.

Based on Herzog's own analysis, Philip Morris' non-food assets, which include
the global tobacco business Philip Morris International, beer maker Miller
Brewing Co. and the company's Philip Morris Capital Corp., are worth $47 per
share. Philip Morris shares closed at $46.53 Friday.

Analysts expect the Kraft IPO will unlock value for Philip Morris. As Herzog
said, if the non-food units are worth $47 per share, then the market is either
not giving any value to Kraft or they are ignoring tobacco and beer.

Adelman, who has a strong buy rating on Philip Morris, said the shares could
climb to $60 by the end of the year. Feldman has a $65 price target on the
shares.

STRONG FOURTH QUARTER, 2001 LOOKS GOOD

On Jan 25, R.J. Reynolds Tobacco Holdings <<A HREF="aol://4785:RJR">RJR.N</A>>,
the No. 2 U.S. cigarette company behind Philip Morris, and UST Inc. <<A
HREF="aol://4785:UST">UST.N</A>>, the top chewing tobacco maker, posted
fourth-quarter profits that topped Wall Street estimates, and both companies
said they expect to show strong earnings gains this year.

On Jan 31, Marlboro-maker Philip Morris posted fourth-quarter profits that
climbed 7.5 percent and said it sees earnings growth this year.

Gurkin, among others, expects "that consistent earnings delivery" to continue
in fiscal 2001. She holds accumulate ratings on Philip Morris and R.J.
Reynolds.

There has been speculation for months that R.J. Reynolds could make a bid for
UST now that it has substantial cash from its acquisition of Nabisco Group
Holdings. R.J. Reynolds scooped up Nabisco Group when Philip Morris bought
cookie and cracker maker Nabisco Holdings Corp.

Feldman has repeatedly said that he sees R.J. Reynolds proposing such a deal by
the end of the second quarter.

If the Nasdaq stays on its volatile course, investors may continue to sell out
of technology stocks and return to old economy shares. Tobacco would likely
benefit from such market shifts.

"In general, we would continue to increase weightings in these names and would
point out that any further volatility in the S&P (500), Nasdaq, or FTSE may
well boost tobacco valuations," Feldman said.

U.N. warns of youth alcohol danger in Internet age

By Will Hardie, 19 February, 2001

STOCKHOLM, Sweden (Reuters) - Aggressive alcohol marketing endangers young
people's lives and governments must work across borders to protect children in
the Internet age, the United Nations' World Health Organization (WHO) said
Monday.

Opening a conference on youth and alcohol, WHO officials said alcoholic
beverage makers were cynically targeting impressionable young people, who were
increasingly using alcohol like a drug.

"Young people are vulnerable. They need to be protected. They need to grow up
without being drawn into something that can ruin their life, change their
future and lead to alcohol dependence," WHO Director-General Gro Harlem
Brundtland told a news conference. "Someone has to take a stand."

WHO Regional Director Marc Danzon said policy-makers must counteract the
glamorous image of alcohol peddled by multinational liquor companies.

"We need to raise understanding among young people that consuming alcohol is no
different to consuming a drug," he said. "More and more it is seeming that as a
product alcohol is being used like a drug."

Governments must pay attention to worrying trends in alcohol usage and put
alcohol policy back at the top of their health agenda, Brundtland said, calling
for an international review of the marketing and promotion of alcohol to young
people.

"In these times of globalization, what used to be national decisions now have
to be taken across borders," she said, citing new data showing alcohol
accounted for one in four deaths among young men in Europe.

"By mixing alcohol with fruit juices, energy drinks and premixed 'alcopops,'
and by using advertising that focuses on a youth lifestyle, sex, sports and
fun, the large alcohol manufacturers are trying to establish a habit of
drinking alcohol at a very young age," she said.

"Look at most Web sites for alcohol products -- they are clearly attempting to
attract the young, with computer games, competitions and offers of prizes and
teen-age fashion shows."

Brundtland said the WHO would establish a strategic advisory committee on
alcohol and hold a meeting in Valencia in Spain later this year to move the
issue forward.

"Satellite television is now bringing commercials for alcohol into every home,
even here in Scandinavia, where alcohol advertising has been banned for
decades," she told a packed news conference.

Alcohol was involved in the deaths of 55,000 Europeans aged between 15 and 29
years in 1999, many through accidents, fires, drownings, suicides and violent
crimes.

While overall alcohol consumption is falling in many countries, a culture of
binge drinking among young people is emerging in developed and developing
countries, she said.

LBD: Texas Lawmakers Should Not Open Pandora's Box; Newly Introduced
Legislation Could Create A Flood Of Unregulated Alcohol

AUSTIN, Texas--(BUSINESS WIRE)--Feb. 19, 2001--"Direct shipment would open
Texas' borders to an influx of untaxed, unregulated alcohol that could easily
fall into the hands of Texas teens and young children and invade our dry
counties," reported Robert Sparks, executive director of the Licensed Beverage
Distributors (LBD), an Austin-based industry association representing Texas'
wine and distilled spirits wholesalers.

The majority of Texans do not support direct shipment of alcoholic beverages.
In a recent Texas statewide poll conducted by the LBD, about 85 percent of
Texas voters said they believe "the direct sale of alcohol over the Internet or
through the mail should not be allowed because it gives minors easy access to
alcohol and could result in more abuse and is morally reprehensible." When
asked what products should not be sold over the Internet, only pornography is
mentioned at higher rates by Texas voters than alcohol.

Even while Texans strongly oppose the direct shipment of alcohol to consumers,
legislation has recently been filed which would allow wineries to do just that.
Two bills -- House Bill 1046 and Senate Bill 892 -- not only give companies the
right to ship alcohol directly to the front doors of consumers, but they also
allow them a great deal of discretion when it comes to honoring the safeguards
established by Texas' Alcoholic Beverage Code.

"These bills are not enforceable. They rely on an 'honor system' and assume
that thousands of out-of-state manufacturers and retailers will know and
respect Texas' law. If passed, the local tax base will suffer, dry county laws
will be ignored, and minors will enjoy a new and easy way to buy alcohol,"
added Sparks.

Texas distributors are bound to stringent state laws in delivering alcohol only
to licensed retailers, ensuring a line of accountability and responsibility for
consumers. Texas' distributors only sell products that have been approved by
the Texas Alcoholic Beverage Commission. Further, they must sell only to
licensed retailers with trained and accountable staff. Finally, they must
collect state excise taxes that amount to over $160 million dollars annually.
It is difficult to imagine that out-of-state companies will be successful in
auditing and monitoring distribution and abiding by these same strict laws,
Sparks said.

"Unfortunately," added Alan Gray, director of Governmental Relations for LBD,
"special interest groups, such as Free the Grapes, hope to increase their
market share by creating loopholes for themselves. They are well aware that if
this legislation were to pass, they would not be held accountable for selling
alcohol into dry counties, collecting taxes, and ensuring that recipients are
21 years of age or over."

"The Attorney General and the Texas Alcoholic Beverage Commission do not have
the funds or the manpower to monitor this influx of alcohol into our state.
These powerful lobby groups know this and are pushing to create major loopholes
in our state's laws, which they will then exploit in an effort to increase
their market share in Texas -- all without any concern for the welfare of our
economy, our dry county residents, or our efforts to stop underage drinking,"
Gray added.

Texas' distributors are a part of the highly regulated intrastate distribution
system made up of three tiers -- producers, distributors, and retailers -- that
provide Texas consumers access to over 35,000 wines and spirits from around the
world today while delivering the product safely and responsibly.

Recently, LBD helped launch the Texas Safety Network
(http://www.texassafetynetwork.org), a Web site formed to create a public forum
for issues related to the responsible delivery of alcohol in today's alcohol
distribution system. The Texas Safety Network supports safeguards including:
protecting the control of alcohol sales in dry counties, collecting taxes from
the sale of alcohol, and, most importantly, ensuring that minors are not able
to buy alcohol over the Internet.

New Study Links Over-Consumption of Soft and Fruit Drinks to Childhood Obesity

ROSEMONT, Ill.--(BW HealthWire)--Feb. 17, 2001--Childhood obesity in the U.S.
is on the rise and new research shows a possible connection between this
serious epidemic and the over-consumption of nutrient-zeroes such as soft
drinks. According to a new study published today in The Lancet, children who
consumed more sugary beverages may be at greater risk for becoming obese.

Researchers at the Harvard School of Public Health looked at 548 ethnically
diverse 11 to 12 year-old children and examined their dietary intakes over a
two-year period. The results showed that those children who increased their
intake of sugar-laden beverages like soft drinks had increased body weight.
Additionally, the odds for becoming obese among these children increased 1.6
times for each additional can or glass of soft drink that was consumed each
day.

"When kids over-consume nutrient-free beverages like soda, it crowds out
nutrient-rich beverages like milk that provide calcium, protein and 7 other
vitamins and minerals," says Greg Miller, Ph.D., F.A.C.N., vice-president of
nutrition research, National Dairy Council. "In addition to the obesity risk,
missing out on nutrient-rich milk during key bone building years could put kids
at risk for developing osteoporosis later in life."

To help satisfy a child's sweet tooth, offer beverages that provide a taste
kids love as well as nutrition. Chocolate milk contains all the same nutrients
as white milk and has half the amount of added sugar found in regular soft
drinks and many fruit drinks.

For more information about the importance of calcium-rich milk for children,
visit www.whymilk.com or www.familyfoodzone.com. For additional dairy research,
visit www.nationaldairycouncil.org.

The National Dairy Council was founded in 1915 and conducts nutrition education
and nutrition research programs through national, state and regional Dairy
Council organizations on behalf of America's dairy farmers.

INTERVIEWS AVAILABLE: To schedule interviews, call 312/988-2494 or email
n...@bsmg.com.

Source: Ludwig, D., et. al: "Relation between consumption of sugar-sweetened
drinks and childhood obesity: a prospective, observational analysis." The
Lancet February 17, 2001: 357: 505-508, 490:491.

Iran flogs three in public over alcohol and sex

TEHRAN, Feb 16 (Reuters) - Three young men were flogged in a busy square in the
Iranian capital on Thursday after being convicted under Iran's Islamic laws of
drinking alcohol and having "illicit sex," the official news agency IRNA said.

Two brothers and their cousin received 179, 180 and 180 lashes respectively
near Vanak square, a busy middle-class commercial district in north Tehran,
IRNA said.

Public floggings are rare in north Tehran, although the penalty is common under
Islamic laws, which forbid the drinking of liquor. Moonshine and smuggled
foreign liquor are nonetheless widely available.

The agency did not say what kind of "illicit sex" the three had engaged in.

Earnhardt Intimidated To the End

By EDDIE PELLS

February 19 DAYTONA BEACH, Fla. (AP) - The striking black car, the bruising
bumps, the devil-may-care attitude that seemed to define every move he made.

In the final hours, the final laps that preceded his tragic death Sunday at the
Daytona 500, Dale Earnhardt provided most of the excitement, and showed over
and over again why he could never be ignored.

Turn away Sunday, and you might have missed Earnhardt bumping Sterling Marlin
for the lead on the 40th lap; or his trusty Chevy trading paint with the one
driven by buddy Jeff Gordon.

The Intimidator nudged a pair of rookies, Ron Hornaday and Kurt Busch, and gave
Busch an extra-special welcome to Winston Cup, with a wave of his hand that
looked as if it might have included an obscene gesture.

This was the kind of performance, given in front of 195,000 fans, that made
Earnhardt famous.

``Dale Earnhardt was the greatest race car driver that ever lived,'' said Ned
Jarrett, a former NASCAR champion himself. ``He could do things with a race car
that no one else could.''

Many times he was brusque, pushy and arrogant. Some might have called him a
rube. But nobody will accuse him of being boring, and his last race lived up to
the reputation.

His final minutes provided images that will chill fans and the racing world
forever. On the other hand, the Earnhardt legend will grow and maybe even
change as people debate what his true intentions were.

It seemed Earnhardt was slowing down as he headed into Turn 4, sitting in third
place on the final lap. He appeared too far behind to catch his son, Dale
Earnhardt Jr., and the eventual winner, Michael Waltrip, a new employee of
Earnhardt who friends say was like a little brother to him.

Could Earnhardt really have been forsaking victory to block off Marlin and Ken
Schrader so he could help his loved ones finish 1-2? He probably would never
have admitted it, but a lot of people thought that was the case.

As Earnhardt appeared to slow, Marlin nudged his back left corner, causing the
car to fishtail slightly and slide down toward the infield. Then, it took a
sharp turn to the right and cut across traffic at a sharp angle.

The car clipped Schrader, whose yellow Pontiac carried both cars hard into the
concrete wall headfirst at about 180 mph.

With Earnhardt's car smoking and the hood flopping up, Schrader's car T-boned
the passenger's side of the Chevrolet. The cars slammed off the wall again,
plowing into the final turn and sliding to a stop on the infield grass.

Doctors said Earnhardt was probably dead by the time his car came to rest.
Paramedics leaned into the mangled car to deliver oxygen and perform CPR, while
workers were rushed in to cut open the car and pull him out.

He was loaded into an ambulance, and when he reached the hospital a few miles
away, his head and face were shielded by a blanket, as a persistent television
camera followed.

He was pronounced dead minutes later, and nobody seemed ready to believe it.

``After the race was over, I heard things didn't look very good but, man,
Earnhardt?'' driver Jeremy Mayfield said. ``You figure he'll bounce right back.
Your first thought is, `Hey, he'll probably come back next week at Rockingham
and beat us all.'''

Instead, the world was greeted with the image of grieving NASCAR president Mike
Helton.

``This is undoubtedly the toughest announcement I've personally had to make,''
he said. ``We have lost Dale Earnhardt.''

It's hard to imagine racing will ever be the same.

[J2jurado]

Happy children drink more sensibly-French minister

STOCKHOLM, Feb 20 (Reuters) - Happiness is the key to cutting teenage alcohol
abuse, French Health Minister Bernard Kouchner said on Tuesday at a global
conference on youth and alcohol.

"To avoid young people drinking too much it is better to offer them another
dream, another adventure, another excitement," he told a news conference in
Stockholm.

"Otherwise all you have to offer is employment or unemployment, unpleasant
housing, broken families," he said. "Offer people happiness. Then we will see."

The European School Survey Project on Alcohol and other Drugs (ESPAD) found a
worrying increase in binge drinking, especially in Britain, Denmark, Ireland
and Poland.

More than 30 percent of schoolchildren in those countries reported binge
drinking -- defined as five drinks in a row -- three or more times in the last
month.

France came in below the European average for child alcohol abuse, with 77
percent of 15- and 16-year-olds having drunk alcohol in the last year against
an average of 83 percent. Some 36 percent of French schoolchildren had got
drunk at least once, compared to a European average of 52 percent.

Kouchner also blamed multinational drinks companies for targeting young people
with aggressive marketing campaigns.

"This is life and we need risk -- but accepted, chosen risk, not risk imposed
by economic groups and advertising by companies," he said.

Kouchner called for European Union health ministers to meet more frequently to
exchange information and coordinate their response to the dangerous trend. But
they faced an uphill struggle, he said.

[J2jurado]

Kirin Beverage Annual Earnings Rise 72% on New Products

Tokyo, Feb. 20 (Bloomberg) -- Kirin Beverage Corp., Japan's No.1 soft drinks
maker, said profit in the year through December rose 72 percent from the year
before as new products contributed to sales.

Group net income rose to 6.97 billion yen ($60 million), or 128 yen a share,
from 4.04 billion yen, or 74.44 yen a share, the year before.

Sales rose 12 percent to 293 billion yen from 261 billion yen on the back of
hit products including `Namacha' canned green tea, `Fire' canned coffee, and
`Gogo no Kocha' canned tea.

``The point for soft drinks makers is whether they come out with new hit
products,'' said Eiichi Yamada, an analyst with Okasan Securities Co. who rates
the company ``outperform.'' New products ``obviously contributed to their
profit.''

Usually, about 15 percent of a soft drinks company's sales is derived from new
products, Yamada said. The full-year earnings beat the company's August
forecast of 6.50 billion yen and an average estimate of 6.48 billion yen from
14 analysts.

Kirin Beverage forecast group net income of 4.3 billion yen for the full year
ending December 2001.

Kirin Brewery Co., Japan's No. 1 brewer and Kirin Beverage's parent company,
will announce earnings at 3 p.m. today.

Kirin Beverage also said it will cut the purchase unit of its stock to 100
shares from 1,000 to make it easier for investors to buy shares.

Kirin Beverage rose 85 yen, or 3.7 percent, to 2,380 in late afternoon trading
after the earnings figures were released.

Kirin Brewery <2503.T>-2001 group forecast

TOKYO, Feb 20 (Reuters) - Year to December 31, 2001

(in billions of yen unless specified)

LATEST ACTUAL

(Group) FORECAST YEAR-AGO

Sales 1.64 trln 1.58 trln

Current 94.00 93.08

Net 35.00 32.92

EPS 35.55 yen 33.18 yen

NOTE - Kirin Brewery Co Ltd is a leading beer brewer.

Kirin Bev <2595.T> to change share trading unit

TOKYO, Feb 20 (Reuters) - Japanese soft drink maker Kirin Beverage Corp
<2595.T> said on Tuesday it will change the minimum trading unit of its shares
to 100 from 1,000 shares, effective from May 1.

The plan, aimed at improving the liquidity of its shares and increasing the
number of shareholders, was approved at a board meeting on Tuesday.

Kirin Beverage is owned 59.2 percent by Japan's largest brewer Kirin Brewery Co
Ltd <2503.T>.

Kirin Beverage said on Tuesday its group net profit in the year to December
rose a steep 72.2 percent from a year earlier to 6.97 billion yen ($60.05
million).

The profit growth was attributed to cost-cutting efforts and good sales of soft
drinks such as new products of green tea and coffee.

Shares in Kirin Beverage were lifted by the news, close up 4.14 percent at
2,390 yen.

Heineken, BBAG Make Rival Bids for Romanian Brewer, Paper Says
(Ziarul Financiar, 2/20, p.1)

Bucharest, Feb. 20 (Bloomberg) -- Heineken NV, Europe's biggest brewer, and
Austrian drinks maker Brau-Beteiligungs AG, made rival bids to buy a Romanian
beer company, daily Ziarul Financiar said.

BBAG made the first offer to buy Timisoreana SA, located in the western
Romanian city of Timisoara, while Heineken conditioned its purchase on
restructuring the brewery, Ziarul Financiar said, citing unidentified company
officials.

The Romanian brewery, which accounts for 4.5 percent of beer sales in Romania,
would cost between $15 million and $20 million, the paper said. The company
ranks seventh in the country by sales.

Austria's BBAG already controls 59 percent of the Romanian beer market
following the purchase of Brewery Holdings. Belgium's Interbrew, South African
Breweries Plc and Tuborg's United Romanian Breweries have the rest of the
market.

Kirin Brewery's 2000 Profit Falls 1% on Economy

Tokyo, Feb. 20 (Bloomberg) -- Kirin Brewery Co. said 2000 earnings fell 1
percent from a year earlier as Japan's largest beermaker continued to battle a
stagnant economy at home and its Australian unit wrote down the value of
investments in China. Kirin Brewery Co. (2503 JP <Equity>) Kirin Brewery rose
18 to 1,148.

Group net income fell to 32.9 billion yen ($283.5 million), or 33.2 yen a
share, for the year ended Dec. 31 from 33.2 billion yen, or 32.6 yen a share,
in 1999. That beat the average estimate of 31.8 billion yen among six analysts
surveyed by Bloomberg News and fell short of the company's August estimate of
34 billion yen.

Revenue rose 8.9 percent, to 1.58 trillion yen from a year earlier. A 12
percent rise in sales at Kirin Beverage Corp., its soft drinks unit, helped
offset declining sales of the parent company's flagship ``Lager'' beer. The
inclusion of Australian brewer Lion Nathan in the group for the first time also
boosted overall sales. Kirin owns 46 percent of Lion Nathan.

``The poor performance at the parent company dragged down earnings as a
group,'' said Naomi Takagi, an analyst with HSBC Securities Co., who rates
Kirin stock ``hold.''

Sales were in line with a 1.57 trillion yen forecast from analysts, and worse
than the 1.6 trillion yen forecast made in August. Excluding subsidiaries and
affiliates, sales fell 3.6 percent.

Lion Nathan

Kirin took one-time charges of 31.4 billion yen last year, including losses on
Lion Nathan's investment in China. Sydney- based Lion in November took a A$120
million ($63 million) charge for its two breweries in China's Yangtze Delta
region and said it didn't expect to make a profit ``in the foreseeable
future.''

Kirin's report comes as Japan's beermakers continue to struggle through a
decade-long economic slump that has cut into sales of their most expensive
brews. Also, Japanese consumers, particularly young people, are drinking canned
cocktails and other nonbeer drinks in increasing numbers.

Total beer shipments fell 0.7 percent last year in Japan as growing sales of
low-malt brews, which are taxed less and priced lower, failed to offset a
decline in sales of regular beer.

Year 2001

For the current year, Kirin projects group net income of 35 billion yen, or
35.6 yen a share, up 6.3 percent from last year. Analysts forecast 38.5 billion
yen, with six estimates ranging from 34 billion yen to 48 billion yen.

The company said it will write off about 20 billion yen, or two-thirds, of its
group pension fund shortfall this year. It will sell part of its stock holdings
to cover the gap.

The company expects parent sales of beer and low-malt brew to increase 1.6
percent this year, even as it sees the total market size remaining unchanged.

The company said group sales are likely to increase 3.7 percent to 1.64
trillion yen, more than the 1.57 trillion yen analysts estimate.

Kirin shares rose 18 yen, or 1.6 percent, to 1,148 yen. The earnings figures
were released after the close of Tokyo trading. The shares have gained 12
percent this year.

Mexican brewer Modelo to post glowing Q4 2000

MEXICO CITY, Feb 19 (Reuters) - Mexican No.1 brewer Grupo Modelo <GMODELOC.MX>
is expected to dazzle with its fourth-quarter 2000 results, with robust growth
in the domestic market, as well as exports, analysts say.

Grupo Modelo, the producer of Corona beer, was anticipated to post sales of
some 8.96 million hectoliters in the October-December period, a rise of 5.4
percent from the year- ago period, according to a Reuters survey of four
analysts.

Analysts said Modelo, 50 percent owned by U.S.-based Anheuser-Busch Cos. Inc.
<<A HREF="aol://4785:BUD">BUD.N</A>>, also benefited from a low comparative
base. Anheuser-Busch, the world's largest brewer, is best known for its
Budweiser beer brand.

Modelo sells three-quarters of its total output in Mexico and exports the rest,
mainly to the United States. The group sells 10 brands of beer, five of which
it exports.

Beer sales abroad are expected to be around 1.5 million hectoliters in the
fourth quarter, compared with 1.3 million hectoliters a year ago.

In the local market, analysts predicted group sales would be up more than 4.0
percent to 7.46 million hectoliters in the quarter after gaining one percentage
point in market share over rival local brewer Femsa <FEMSAUBD.MX>.

"For this fourth quarter, we see positive results, marked by growth in
operating flow and an increase in market share," said analyst Victor Hugo
Flores at Interacciones brokerage in Mexico.

Grupo Modelo is seen increasing its domestic market share in 2000 to 55.9
percent from 54.9 percent in 1999.

Analysts forecast an average rise of 27.6 percent in operating profit, due to
an improvement in operating efficiency.

Modelo is expected to report earnings per share in the fourth quarter of 0.22
pesos against 0.21 pesos in the fourth quarter of 1999.

Grupo Modelo will release its results on Feb. 26.

Following are the results of the survey. Figures are in pesos and those for
1999 are inflation-adjusted.

----------------------------------------------------------

Q4 2000 Q4 1999 PCT

estimate adjusted CHANGE

Total sales 7.047 bln 6.514 bln 8.1 pct

Oper profit 1.529 bln 1.198 bln 27.6 pct

Oper margin 21.50 pct 18.40 pct 310 bps

EBITDA (oper flow) 1.900 bln 1.434 bln 24.5 pct

Net profit 828 mln 711 mln 16.5 pct

Volume sales in hectoliters (100 liters each)

National 7.46 mln 7.15 mln 4.3 pct

Exports 1.50 mln 1.34 mln 11.9 pct

Total 8.96 mln 8.50 mln 5.4 pct

Egypt's OHH to acquire OPTD, spin off Gouna Beverage

By Abdalla Hassan

CAIRO, Feb 19 (Reuters) - Egypt's Orascom Hotel Holdings (OHH) (ORHC.CA) is to
acquire parent company Orascom Projects and Touristic Development (OPTD)
(OPTD.CA) through a share swap in March, with OPTD's Gouna Beverage subsidiary
spun off in the coming days, the company's chairman said on Monday.

The acquisition is designed to enhance transparency and eliminate potential
conflicts of interest between the OHH and OPTD, said Samih Sawiris, the
chairman of both companies.

"We would have a single consolidated balance sheet that effectively illuminates
all inter-company transactions."

OPTD, a tourism developer and contractor, owns 57.4 percent of OHH, an operator
of resort villages in Aqaba, Jordan, and Hurghada and Taba on Egypt's Red Sea
coast.

OHH currently has a free float of 32.5 percent while OPTD's free float is 0.4
percent. The new, combined entity, with a 21.6 percent free float, will be
named Orascom Hotel Development.

THE PLAN FOR THE SWAP

OHH will issue 49.92 million new shares valued at 499.2 million pounds to buy
all of OPTD's 38.4 million outstanding shares. Shareholders would get 1.3 OHH
shares for each OPTD share.

"The ratio of the exchange is strictly a valuation of OPTD and OHH as a whole
-- the shares in the market, discounted cash flow, asset valuation. We came to
the conclusion that a very fair exchange ratio for a share of OPTD is 1.3
shares of OHH," said Sawiris.

In March, OHH will make a tender offer for 100 percent of OPTD, during which
the swap of shares will take place, he said.

"If you have shares worth 1 million pounds in OPTD, you will get shares worth 1
million pounds in OHH," Sawiris explained.

A capital increase of up to 700 million pounds has been approved, of which
499.2 million represents the swap. The remainder would be a cash injection from
banks, the Sawiris family, and other investors. The equity increase would be
completed by the end of April.

GOUNA BEVERAGE SALE

"(The Gouna Beverage Group) has become so big that it does not belong in this
new merged company as a subsidiary," Sawiris said.

The book value of OPTD's 35 percent stake in Gouna Beverage Group is 95 million
pounds, according to company figures. Sawiris places a valuation on OPTD's
stake in Gouna of up to 120 million pounds. El Gouna posted roughly 7 million
pounds in profit last year, the company said.

Sawiris said the company would either be sold in whole to Al Ahram Beverages
(PYBR.CA) (PYBYq.L) -- fortifying its monopoly position in the domestic alcohol
market -- or he may personally elect to purchase OPTD's stake in Gouna
Beverage.

"I find myself very sentimental in this instance. When I am objective, I say I
should sell outright, and when I am sentimental, I say I should buy outright.
So I have not made up my mind," said Sawiris.

"(Al Ahram Beverages) has reached a level of pricing that kills my
sentimentality. But if for any reason they do not finalise the deal, then the
level they have proposed before leaving the deal is obviously good enough for
me. The last offer they refuse is the offer I would take."

The transaction will be concluded within days, he said.

Launched in April 1999, the Gouna Beverage Group makes Obelisque wines, Sakara

beer and is the local producer for Lowenbrau.

Along with OPTD, the Sawiris family and Lebanon's Debbane family are among the
other shareholders.

OPTD shares fell 0.39 of a pound, to 8.84 at the close of Monday's session on
volumes of 1,319 shares. OHH fell 0.32 pound to close at 7.21 with 74,951
shares changing hands.

Al Ahram Beverages ended Sunday's session at 50.12 pounds. No trades took place
on the stock on Monday. Al Ahram's GDR closed at $12.90 on Monday.

EXPANSION STRATEGY

Shareholders will not be seeing a dividend anytime soon, Sawiris said. "OHH has
an ambition business plan that would take away all its cash surpluses."

Following its acquisition, company debt would total 887 million pounds.

But the larger market capitalisation of the new company will give it a greater
potential to finance growth through a GDR or local placement, he said.

He added that currently more than 1,000 units are under construction. The goal
is to reach a critical mass of rooms in the resort villages in order to draw
serious attention from European tour operators, he said.

"We are selling more units to foreigners, which means that our real estate
business is no longer limited to Egyptian real estate market situations, but is
quite independent. We have 25 to 35 percent of units sold to foreigners," he
said.

"It increases our revenues in dollars, which buffers us against the
exchange-rate risk." ($1-3.88 Egyptian pounds)

Foster's Wine Unit Name Changed to Beringer Blass Wine Estates

Melbourne, Feb. 20 (Bloomberg) -- Foster's Brewing Group Ltd., Australia's
biggest brewer, said it changed the name of its wine unit to Beringer Blass
Wine Estates from Mildara Blass to reflect its newly acquired Beringer vineyard
in California.

The name change at Foster's second-biggest unit is part of the brewer's
strategy to boost wine exports and increase the contribution wine makes to its
profits. Wine now accounts for more than a third of Foster's earnings after its
$1.2 billion cash and debt takeover of Beringer last year.

Mildara Blass Managing Director Terry Davis will remain head of the newly named
unit, based in Melbourne. Beringer Chief Executive Walt Klenz will continue as
chief of the U.S. operations, which account for more than half of the unit's
total sales.

Beringer Blass said in a statement to the Australian Stock Exchange it aims to
increase sales of the wine group's Californian brands in the U.K. and other
parts of Europe. It will also upgrade winemaking infrastructure in Australia,
the company said, without being specific.

Foster's has said it wants to offset slowing growth in beer sales in its home
market and tap the world's growing appetite for Australian-made wines,
particularly premium bottled red wine. Earnings from Foster's wine unit rose
17.1 percent to A$103.9 million ($55 million) in the six months ended Dec. 31,
2000.

Foster's shares rose 3 cents, or 0.7 percent, to A$4.66. The stock has risen
almost 6 percent since the Beringer acquisition was announced in August.

Allied Domecq May Lose US Rights to Stolichnaya

(Wall Street Journal 2/20 p. 26)

Moscow, Feb. 20 (Bloomberg) -- Allied Domecq Plc, the world's No. 2 spirits
company, faces losing the U.S. rights to distribute Stolichnaya vodka after the
Russian government said it may attempt to reclaim the brand.

A spokesman at the Department for Regulating the Tobacco and Alcohol Markets
confirmed Russian prosecutors are considering filing suit to take back the
Moskovskaya and Stolichnaya vodka brands from Soyuzplodimport, the current
owner.

Allied Domecq signed a 10-year contract with Soyuzplodimport in November after
winning the U.S. distribution rights to Stolichnaya, trumping rivals Diageo Plc
and Bacardi Ltd. Allied Domecq, which hasn't disclosed the value of the
agreement, couldn't be reached for comment.

The Wall Street Journal earlier reported the Russian government was seeking to
move the vodka rights to state-owned company Rosspirtprom, citing an
unidentified spokesman. The move came after the Russian audit chamber, a
parliamentary watchdog, said ownership by Soyuzplodimport was illegal.

The shares of Allied fell as much as 4 pence, or 1 percent, to 432.75p. The
stock has advanced 58 percent in a year.

Soyuzplodimport refuted the government's claim, saying an appeals court on
Monday had confirmed ``all'' its ownership rights, the Journal said.

``Our right to these brands can only be challenged in court and not by
administrative fiat, and the courts are on our side,'' Soyuzplodimport Chief
Executive Andrei Skurikhin told the paper.

Stolichnaya is the No. 2 imported premium vodka in the U.S., behind Sweden's
Absolut, with sales of more than 1 million cases a year.

(Wall Street Journal 2/20 p. 26)

World Health Organization Attacks Drinks Companies, CNN Says

Stockholm, Feb. 20 (Bloomberg) -- The World Health Organization attacked drinks
companies for encouraging alcohol consumption among young people, Cable News
Network reported.

The criticism followed publication by the United Nations body of a report
indicating that more than 55,000 people aged 15 to 29 die each year in Europe
as a result of road accidents, poisoning, suicide and murder linked to alcohol,
the television station said. Alcohol accounts for one in four deaths of young
males in that age group.

``Not only are children growing up in an environment where they are bombarded
with positive images of alcohol, but our youth are a key target of the
marketing practice of the alcohol industry,'' CNN quoted Dr. Gro Harlem
Brundtland, the WHO director- general, as saying at a three-day conference in
Stockholm of European health ministers.

The authors of the report said alcohol has no beneficial effects on young
people, and advertising of alcoholic drinks should be regulated more strictly.

Dr. Marc Danzon, WHO director for Europe, said: ``The public should know what
alcohol is. And that it is not exactly what the advertisers, the alcohol
industry and sometimes the media are saying. It means pleasure, conviviality --
but also death.''

Delegates at the conference, held to discuss the problem of young drinkers,
said rapid social and economic change, civil conflict, poverty, homelessness
and isolation mean that more young people are drinking to excess, CNN said.

Diageo Picks Northwest's Dasburg to Head Burger King

London, Feb. 20 (Bloomberg) -- Diageo Plc, the largest liquor company, has
picked an airline executive to run Burger King as the No. 2 hamburger chain
prepares for an initial public offering.

Northwest Airlines Corp. Chief Executive John Dasburg, 58, joins Burger King as
CEO on April 1 with the task of reviving demand before the sale of shares in 20
percent of the unit. He joined the No. 4 airline from Host Marriott Corp. in
1989.

The airline last month reported an 11 percent increase in fourth-quarter profit
from operations as it lured passengers from rivals. For the full year, net
income fell 15 percent because of storms that disrupted schedules and higher
fuel costs. Northwest posted a loss of $285.5 million for 1998 after a strike
by pilots.

``The results were really mashed up at Northwest after the pilots' strike,''
said Daniel Solon, an aviation consultant with Avmark International. I don't
know that any discredit can be attached to Dasburg. He has a good reputation as
a manager.''

Diageo announced the sale of shares in 20 percent of Burger King share last
June as Chief Executive Paul Walsh focuses on the liquor business, including
Smirnoff vodka. Diageo has been looking for a chief executive for the
Miami-based chain since that time.

``The market will welcome this move as it was dragging on a bit,'' said Andrew
Gowan, an analyst at Lehman Brothers with an ``underperform'' rating on Diageo.
``The offering will probably be delayed as Dasburg will have to turn around the
business first.''

The share sale was initially scheduled for late this year but may now take
place at the end of 2002, analysts said. Walsh said it may take place this year
or next.

Strike Threat

Dasburg is leaving Northwest as the mechanics union asks members to prepare for
a strike March 12 over wages and back pay. During Dasburg's tenure, the
two-week strike by pilots cost more than $1 billion in lost revenue, analysts
said.

``Dasburg brought Northwest back to life,'' Walsh said in an interview. ``He
may have had some unpalatable decisions to make along the way, but he is
credited as being the savior of that airline.''

Consolidation in the U.S. airline industry has prompted speculation Northwest
may ally with a rival. The Wall Street Journal said the carrier has held talks
with Delta Airlines Inc., citing unidentified people with knowledge of the
situation.

``Things in the airline industry are going to get worse before they get
better,'' Solon said. ``Dasburg's track record is pretty creditable and it's a
fairly astute career move.''

Diageo said the father of two wanted to return to Florida from Minnesota and to
the restaurant industry, where he worked for nearly a decade at Host Marriott,
whose hotel chains include Marriott, Ritz Carlton and Hyatt.

``He's more of a financier than an airline man,'' said Ian Wild, an analyst at
SG Securities. ``He returned Northwest to public trading after a leveraged
buyout in 1989.''

Dasburg wasn't available to comment.

The Beef

``He must immediately address Burger King's flat sales, or the IPO could be
delayed even further,'' said Phillip Morrissey, an analyst at UBS Warburg with
a ``buy'' rating on Diageo.

Burger King had sales of $10.9 billion in fiscal 1999. It has more than 11,150
restaurants in 57 countries. Sales in outlets open longer than a year are
expected to fall 2 percent in the first half, analysts said. Diageo reports
earnings for the six months ended Dec. 31 on Thursday.

Dasburg will replace acting CEO Colin Storm, 61, who holds the post ahead of
his planned retirement this year.

Diageo's shares fell as much as 10 pence, or 1.4 percent, to 690p. They've
increased 37 percent over the past 12 months.

Alumasc 1st-Half Profit Halves on Car Plant Closure

Kettering, England, Feb. 20 (Bloomberg) -- Alumasc Group Plc, which makes car
engine parts, said first-half profit more than halved after Bayerische Motoren
Werke AG, its No. 1 customer, sold the unprofitable Rover unit. Alumasc shares
fell as much as 5.5 percent.

Net income for the six months ended Dec. 31 fell to 1.23 million pounds ($1.74
million), or 3.2 pence a share, from 3.75 million, or 9.3p, in the year-earlier
period. Sales fell 15 percent to 58.2 million.

BMW began exiting the U.K. market last year because of the pound's strength and
high labor costs. Demand for Alumasc's cam covers shrank after BMW sold Rover
Cars to a group of U.K. businessmen and its Land Rover business to Ford Motor
Co.

``We had an unhealthy dependence on the car market,'' said Alumasc Chairman
John McCall in an interview. The company makes most of its money selling
specialist components to carmakers and breweries. Metal auto parts make up 15
percent of revenue.

General Motors Corp. and Ford also slashed U.K. car production last year as oil
prices surged and car prices fell.

Makers of aluminum auto parts have suffered from receding demand for specialist
components. Alumasc's one-time main rival TransTec Plc collapsed in 1999 with
debts of 66.5 million pounds. The U.K. company now competes with
Minneapolis-based JL French Automotive Castings Inc.'s Morris Ashby unit.

Weak Brand

``BMW's problem was that it bought a very weak brand which never really had
much export potential,'' said Colin Couchman, an auto industry consultant with
Standard and Poor's DRI in London.

Alumasc shares fell as much as 7p to 121. The stock fell 6 percent in the past
year compared with a 1 percent increase in the FTSE All-Share Index.

The spate of takeovers among brewers, Alumasc's second- biggest market, headed
by Interbrew's foiled attempt to buy Bass, pruned profit by a further 1 million
pounds.

``Demand will never go back to what it was,'' McCall said.

Alumasc began making beer barrels in the 1950s for brewers such as Guinness
Plc. Bigger companies such as Vivendi Universal SA, Diageo Plc, and Allied
Domecq Plc now dominate the industry.

Sales of building products also fell as the worst U.K. floods in more than 50
years delayed construction of new houses. Alumasc is also shouldering two
money-losing building units, one of which it hopes to sell. It will continue to
fund the Leonardo Internet search engine, which has ``very modest revenue,''
McCall said.

Alumasc's strategy to combat falling revenue in the three key industries it
supplies -- auto, brewing, building -- is to focus on adapting the machinery is
has to make specialist parts for telephone-equipment makers such as Filtronic
Plc.

Obituary: Beer Team "Global Bowler" founder dies

20 February SAN DIEGO (AP) - Joe Norris, the longtime bowling star who
organized the first of the fabled ``beer teams'' in the 1930s, died Monday of
complications of pneumonia. He was 93.

Under Norris' captaincy, Stroh's won the 1934 American Bowling Congress
Tournament, and captured five National Match Game championships between 1934
and 1945. He added two more ABC Tournament titles with the Tri-Par Radio team.

Norris, born in Springfield, Ill., and raised in Detroit, became the first
bowler inducted into the San Diego Hall of Champions when he was honored Feb.
7. It was the eighth hall of fame to recognize him.

In 1994, at age 86, Norris became the oldest bowler in ABC Tournament history
to roll a 300 game.

Forbes Medi-Tech Inc.: Pauls Limited Launches Cholesterol-Lowering Milk
Containing Reducol In Australia

VANCOUVER, B.C.--(BW HealthWire)--Feb. 20, 2001--Forbes Medi-Tech Inc
(NASDAQ:<A HREF="aol://4785:FMTI">FMTI</A>)(TSE:FMI.)

Forbes Medi-Tech Inc. (NASDAQ:FMTI)(TSE:FMI.) and is pleased to announce that
one of Australia's leading dairy producers, Pauls Limited, has launched LOCOL
milk products enriched with Reducol(TM), Forbes' phytosterol-based
cholesterol-lowering functional food ingredient.

The LOCOL milk product is available in two forms: No Fat (less than 0.15%) and
Reduced Fat (1.5%). Packaged in gable-topped tetra-pack cartons, the product's
front panel highlights the Reducol(TM) name and logo. LOCOL is being
distributed nationally across Australia with a retail price of approximately
Aus$2.29 per one litre carton.

"We are very pleased that products containing Reducol(TM) are being launched by
a company with a strong brand presence in Australia," stated Tazdin Esmail,
President and CEO, Forbes Medi-Tech. "In addition to this product launch,
Forbes anticipates several additional Reducol(TM)-based product introductions
from other multi-national companies in North America and internationally in
2001."

Pauls Limited of Brisbane is one of the largest producers and distributors of
dairy products in Australia. Pauls has approximately 550 farmer suppliers in
Queensland, currently supplying 340 million litres of raw milk per annum. Pauls
also processes 200 million litres of fresh milk through its plants in Bendingo
and Rowville, Victoria and distributes and sells this milk throughout
Australia.

Reducol(TM) is a proprietary, phytosterol-based cholesterol-lowering compound
exclusively licensed on a worldwide basis to Novartis Consumer Health SA for
use as a functional food ingredient, dietary supplement and inclusion in
certain over-the-counter products.

Unlike other cholesterol-lowering ingredients that may be limited to oil-based
foods, Reducol(TM) can be incorporated into a wide variety of food products
compatible with individual tastes and a healthy diet. The market for food and
beverages containing added ingredients to improve health or prevent disease,
dubbed "nutraceuticals" or "functional foods", is forecast to reach US $83
billion worldwide by 2005 according to the Nutrition Business Journal.

Phytosterols, also known as sterols, are lipid-like compounds found in plants,
fruits and vegetables. Most people consume 200 - 300 mg of phytosterols per day
as part of a normal healthy diet. The molecular structure of phytosterols is
similar to that of dietary cholesterol, which is absorbed by the intestine and
transported through the bloodstream. Because of their structural similarity to
cholesterol, phytosterols compete with dietary and endogenously secreted
cholesterol for absorption. However, diet alone does not normally provide
sufficient phytosterols to significantly reduce LDL cholesterol levels.
Consumption of an additional 1-2 grams of phytosterols such as Reducol(TM) on a
daily basis helps block cholesterol absorption in the intestine and lowers
blood cholesterol levels significantly. Reducol(TM) (Phytrol(TM)) has been
clinically shown to reduce LDL ("bad") cholesterol levels by approximately 24
per cent in conjunction with a healthy diet. Of this 24 per cent reduction in
LDL cholesterol, approximately nine per cent can be attributed to a healthy
diet.

Forbes Medi-Tech Inc. is dedicated to the research, development and
commercialization of innovative nutraceutical and pharmaceutical products
derived from nature. By extracting plant sterols from pulping by-products,
Forbes is developing cholesterol-lowering agents to be used both as functional
food ingredients and pharmaceutical therapeutics in the battle against heart
disease. Forbes is also developing innovative fermentation technology that
converts plant sterols into pharmaceutical fine chemicals, essential in the
production of various pharmaceutical steroids such as contraceptive agents and
anti-inflammatories. Phytrol(TM) and CardioRex(TM) are trademarks of Forbes
Medi-Tech Inc.

The Nasdaq National Market and the Toronto Stock Exchange have not reviewed and
do not accept responsibility for the adequacy or accuracy of the content of
this News Release. This press release contains certain forward-looking
statements within the meaning of Section 27A of the U.S. Securities Act of 1933
and Section 21E of the U.S. Securities Exchange Act of 1934, which statements
can be identified by the use of forward looking terminology, such as "may,"
"will," "expect," "anticipate," "estimate," "predict," "plans" or "continue" or
the negative thereof or any other variations thereon or comparable terminology
referring to future events or results. The Company's actual results could
differ materially from those anticipated in these forward-looking statements as
a result of numerous factors, including the risk of technical obsolescence,
intellectual property risks, marketing/manufacturing and partnership/strategic
alliance risks, any of which could cause actual results to vary materially from
current results or the Company's anticipated future results. See the Company's
reports filed with the Toronto Stock Exchange and the U.S. Securities and
Exchange Commission from time to time for cautionary statements identifying
important factors with respect to such forward-looking statements, including
certain risks and uncertainties, that could cause actual results to differ
materially from results referred to in forward-looking statements. The Company
assumes no obligation to update the information contained in this press
release.

[J2jurado]

Foster's Completes Share Buyback Program, Spends A$124.5 Mln

Melbourne, Feb. 21 (Bloomberg) -- Foster's Brewing Group Ltd., Australia's
biggest brewer, said it spent A$124.5 million ($65 million) completing its
buyback of 28.8 million, or 1.5 percent, of its shares outstanding.

The company has no immediate plans to buy back more stock, Foster's spokeswoman
Nicole Devlin said. In August, Foster's suspended its buyback program in ``the
medium term'' after its $1.2 billion cash and debt takeover of Californian
winemaker Beringer.

The buyback, which started on Feb. 22, 2000 and ended today, saw Foster's buy
its stock at an average price of about A$4.33 a share. The shares traded
between A$4.07 and A$4.80 during the buying period.

A year ago, Foster's said it would buy back as much as 52 million shares, or 3
percent of its stock, in the first year, followed by subsequent purchases of
about 1 percent each year ``if business and market conditions are
appropriate.''

Its shares rose 2 cents to A$4.67 today. The stock has risen 12.3 percent over
the past year.

BBAG Denies It's Bidding Against Heineken for Romanian Brewery

Bucharest, Feb. 20 (Bloomberg) -- Oesterreichische Brau- Beteiligungs AG,
Austria's largest beverage company, denied a report it's bidding against
Heineken NV to buy a Romanian brewery. The company known as BBAG spent 165
million euros ($149.6 million) for three such companies in Romania last year.

The Austrian maker of Kaiser and Goesser beers and Amsterdam- based Heineken,
Europe's largest brewer, have made rival offers for beer maker Timisoreana SA,
newspaper Ziarul Financiar reported. Timisoreana ranks seventh in Romania by
sales volume.

``We have no plans to make an offer for this brewery in Romania because we've
expanded enough there for the time being,'' said BBAG spokeswoman Susanne
Weichselbaum.

European beermakers have been eager to expand in growing Eastern European
markets to take advantage of rising demand for Western European brands. BBAG
bought six breweries in the region in 2000, while Heineken merged stakes in
Polish beermakers Zywiec SA and Brewpole to form that country's No. 1 brewer.

BBAG was first to bid for Timisoreana, located in the west Romanian city of
Timisoara, and was followed by Heineken, whose offer was based on a plan to
restructure the business, the newspaper said, citing unidentified people at
Timisoreana. The brewery, which generates 4.5 percent of Romania's beer sales,

would cost between $15 million and $20 million, the paper said.

Heineken, for its part, neither confirmed nor denied the report. ``We don't
comment on market rumors,'' said Albert Holtzappel, a Heineken spokesman. ``In
general, we're always ready to talk to anyone and we keep our options open.''

BBAG already controls 59 percent of Romania's beer sales. South African
Breweries Plc, Eastern Europe's largest brewer, Belgium's Interbrew SA and

United Romanian Breweries have the rest of the market.

BBAG shares were little changed at 44.10 euros, while Heineken rose as much as
0.45 euro, or 0.7 percent, to 62.15 euros. BBAG shares have fallen 4.6 percent
this year, while Heineken shares have dropped 4.3 percent.

Weakness in brewer Bavaria drags down Colombian shares

BOGOTA, Colombia, Feb 20 (Reuters) - Colombian stocks tumbled on Tuesday,
dragged down by weakness in brewery group Bavaria <BAV.BG> as hopes dimmed that
a two-month-old strike would end soon, traders said.

The peso posted its third consecutive fall after ratings agency Standard &
Poor's last week kept Colombia's outlook at negative, tilting toward a
downgrade.

* The Medellin bourse's Ibomed index <.IBMG> fell 0.70 percent to 10,999.42 on
turnover of $567,000.

* The Bogota bourse's IBB index <.IBB> declined 0.68 percent to 835.93 on
volume of $550,110.

* Combined turnover of the two markets is seldom more than $2 million.

* Labor Minister Angelino Garzon, in an attempt to break a crippling strike
over demands for higher pay by Bavaria workers, named an arbitration panel on
Sunday.

* "Clients are not sure that the arbitration panel will solve the situation in
Bavaria soon, so they preferred to sell," a trader in Medellin said.

* Bavaria, the most heavily weighted stock and with a 90 percent control of the
country's beer market share, has lost $30 million from the strike, according to
some estimates by traders.

* Other losers included Bancolombia <BIC.BG>, the country's largest bank, which
fell 4.17 percent in Medellin but advanced 1.51 percent in Bogota.

* Leading cement maker Cementos Argos <ARG.BG> lost 1.92 percent in Medellin
and fell by 0.95 percent in Bogota.

* Coltabaco <CCT.BG>, the country's No. 1 cigarette maker and a member of the
powerful Sindicato Antioqueno conglomerate, shed 2.02 percent in Medellin and
gained a modest 0.1 percent in Bogota.

* The peso fell 0.06 percent and closed at 2,250 pesos to the dollar -- its
lowest level since it posted a historical low of 2,260 on Jan. 23.

* Last Friday, S&P affirmed Colombia's sovereign credit ratings, saying the
South American country was under fiscal pressure and that two-year peace talks
between the government and rebels from the Revolutionary Armed Forces of
Colombia (FARC) were not making sufficient progress.

Boston Beer Announces Fourth Quarter 2000 Results

Full Year Net Sales and EPS increase by 8% and 15% respectively

BOSTON, Feb. 20 /PRNewswire/ -- The Boston Beer Company, Inc. (NYSE: <A
HREF="aol://4785:SAM">SAM</A>), brewer of Samuel Adams Boston Lager(R),
announced its results for the quarter ended December 30, 2000. During the
fourth quarter of 2000, barrels sold and net sales were 313,000 and $48.9
million, respectively, compared to 298,000 and $44.6 million in 1999. The
increase in volume is primarily attributable to growth in Samuel Adams Seasonal
products of 20.9%, Samuel Adams Boston Lager of 5.4% and shipments of BoDean's
Twisted Tea(TM). The increases in volume from continuing styles and the new
product introduction were partially offset by the discontinuation of certain
year-round styles.

Gross profit increased to 54.2% of net sales for the fourth quarter 2000
compared to 52.8% in the same period of 1999, primarily due to an increase in
selling price offset by slightly higher cost of sales on a per barrel basis.
Net income increased to $1.9 million or $.11 per share for the fourth quarter
of 2000 compared to $1.5 million or $.07 per share for the fourth quarter of
1999. The increase is partially due to a capital gain of $453,000 that was
realized on the sale of certain marketable securities during the fourth quarter
and utilized to offset a capital loss tax carry-forward from a prior year.

While depletions of Samuel Adams Boston Lager and Samuel Adams Seasonals grew
by 2.1% in the fourth quarter of 2000 as compared to the same period of 1999,
total depletions were flat as compared to the prior year quarter. Declines in
certain year-round styles and Oregon Original(TM) Ales more than offset
depletions of the new product, BoDean's Twisted Tea.

For the twelve months ended December 30, 2000, barrels sold increased 5.7% to
1,241,000 from 1,174,000 in the same period of 1999. Net sales increased 7.8%
to $190.6 million in 2000 from $176.8 million in 1999 due to an increase in
volume and selling price. The Company's gross profit margin increased slightly
to 55.9% for 2000 versus 55.7% in 1999. Advertising, promotion and selling
expenses increased by $3.15 per barrel, to 40.8% of net sales compared to 39.6%
for 1999. Net income increased to $11.2 million or $.62 per share for 2000 as
compared to $11.1 million or $.54 per share for 1999.

Total depletions for 2000 increased 3.5% versus 1999. Samuel Adams Boston
Lager and Samuel Adams Seasonals had combined depletions growth of 4.1%. During
2000, the Company's shipments exceeded reported depletions by 400,000 case
equivalents due to wholesaler inventory build and new product roll-out. The
Company anticipates that most of this difference will reverse in the first half
of 2001. During the first quarter of 2000, the company rolled out a new
product BoDean's Twisted Tea, which contributed to the first quarter 2000
shipments. As the result of a brand improvement study, the Company anticipates
the repositioning of BoDean's Twisted Tea to Twisted Tea? during the first half
of 2001. The Company does not anticipate matching the 2000 first quarter
BoDean's Twisted Tea shipments in 2001.

Actual shipments in January 2001 and orders on-hand for the February/March
period of 2001 indicate that total shipments will be approximately 9% below
volume reported for the prior year quarter ended March 25, 2000. Orders on-
hand for Samuel Adams Boston Lager and Samuel Adams Seasonals project a decline
of approximately 1%. Actual shipments for February/March 2001 may differ,
however, and no inferences should be drawn with respect to shipments in future
periods.

During the fourth quarter of 2000 the Company repurchased 1,374,600 shares of
its Class A Common Stock for an aggregate purchase price of $11.8 million.
Through February 16, 2001 the Company has repurchased a total of 4,121,850
shares of its Class A Common Stock for an aggregate purchase price of $33.0
million. Cash and short-term unrestricted investments are $35.1 million for
the period ended December 30, 2000. The Company continues to generate
significant positive cash flows.

The Company recently (1/31/01) announced the promotion of President and COO
Martin Roper to CEO in order to free up Jim Koch (Founder and Brewer) to spend
more time focused on the Company's growth strategies. In addition, the Company
announces today, the promotion of Vice President of Operations Jeffrey White to
COO.

Jim Koch founded The Boston Beer Company in 1984 to brew the Company's flagship
beer, Samuel Adams Boston Lager. Today, The Boston Beer Company, winner of
more than 170 international awards, is America's leading brewer of world-class
beer. For more information, visit the web site at www.samadams.com.

Statements made in this press release that state the Company's or management's
intentions, hopes, beliefs, expectations or predictions of the future are
forward-looking statements. It is important to note that the Company's actual
results could differ materially from those projected in such forward-looking
statement. Additional information concerning factors that could cause actual
results to differ materially from those in the forward- looking statements is
contained from time to time in the Company's SEC filings, including but not
limited to the Company's report on Form 10-K for the year ended December 25,
1999. Copies of these documents may be obtained by contacting the Company or
the SEC.

THE BOSTON BEER COMPANY, INC.

Financial Results
(In thousands, except per share data) (Unaudited)
Operating Results:

3 Months Ended 12 Months Ended
Dec. 30, Dec. 25, Dec. 30, Dec. 25,
2000 1999 2000 1999
Barrels sold 313 298 1,241 1,174
Gross sales $54,362 $49,866 $212,105 $197,309
Less excise taxes 5,495 5,271 21,551 20,528
Net sales 48,867 44,595 190,554 176,781
Cost of goods sold 22,395 21,053 84,057 78,397
Gross profit 26,472 23,542 106,497 98,384

Advertising,
promotional & selling
expenses 20,995 18,838 77,838 69,935
General &
administrative
expenses 3,573 2,878 12,539 11,574
Total operating
expenses 24,568 21,716 90,377 81,509
Operating income 1,904 1,826 16,120 16,875
Other income, net 1,023 722 2,930 2,215
Income before income
taxes 2,927 2,548 19,050 19,090
Income taxes 1,039 1,081 7,811 8,010
Net income $1,888 $1,467 $11,239 $11,080
Earnings per share -
basic $0.11 $0.07 $0.62 $0.54
Earnings per share -
diluted $0.11 $0.07 $0.62 $0.54
Weighted average shares
- basic 17,032 20,056 18,056 20,413
Weighted average shares
- diluted 17,103 20,096 18,109 20,459
EBITDA $4,193 $3,537 $23,539 $22,887

Copies of The Boston Beer Company's press releases, including quarterly
financial results, are available by fax (free of charge) by calling Company
News On Call @ 1-800-758-5804 (Ext. 108764) or on the Internet at
www.samadams.com

Live, February 20, 2001 at 4pm, listen-only broadcast of conference call at
www.bostonbeer.com.

U.S. study finds drinking and cycling don't mix

CHICAGO, Feb 20 (Reuters) - Riding a bicycle after just one alcoholic drink
increases the risk of fatal or serious injury by five times, while five drinks
raise that risk twentyfold, researchers reported on Tuesday.

Previously published studies had indicated that about a third of all U.S.
bicycle deaths were alcohol-related, but details of the risk had not been
assessed until now, said the study from Johns Hopkins University School of
Medicine in Baltimore.

Susan Baker, one of the study's authors, said she was surprised at how much
impact drinking had on bicycling.

"The people who have blood alcohol concentrations of .08 or higher ... were 20
times as likely to be killed or badly injured as the bicyclist who had not been
drinking ... a huge effect," she said.

The report added that just one drink increased the risk of a fatal or serious
injury about fivefold.

One drink can lead to a blood-alcohol concentration of .02 percent, while four
to five drinks can result in a concentration of .08 percent, the legal level in
many states at which a driver is considered to be impaired by alcohol.

The researchers said they studied the death records of 124 bicyclists aged 15
or older killed in Maryland from 1985 to 1997 and also took breath tests from
342 other cyclists during roadside surveys in the state in areas where bikers
had been injured in previous accidents.

"Riding a bike requires a higher level of psychomotor skills and physical
coordination than driving a car, so alcohol has an even stronger effect on
bicyclists than drivers," said Guohua Li, lead author of the study.

The study, published in this week's Journal of the American Medical
Association, found that only 5 percent of injured cyclists who had been
drinking wore helmets.

"It's a double jeopardy. Those who ride under the influence are most in need of
protection, yet in our study, they were least likely to wear helmets," Li said.

Thirty percent of injured cyclists who had elevated alcohol levels in the study
had a history of driving a car while intoxicated, the report said, adding that
some probably used bicycles for transportation because their driver's licenses
had been suspended.

The study also noted that while the number of fatal accidents involving
children had decreased by 70 percent since 1975, fatalities involving adult
riders rose by about 65 percent during that period. That might be due to laws
requiring children to wear helmets -- something that perhaps should be extended
to adults, the study said.

Irish minister to get tough on youth drinking

DUBLIN, Ireland (Reuters) - Ireland's justice minister said Tuesday he was
prepared to toughen already-stringent laws if necessary to beat the growing
problem of youth alcohol abuse.

John O'Donoghue met the chief of police to discuss enforcing drinking laws,
which he said already were among the strictest in Europe.

"More and more people whose practice it is to supply alcohol to teen-agers are
going to find out it is a crime that doesn't pay," he said in a statement.

"And I have assured the (police) commissioner that if further strengthening of
the law is required, this government will not be found wanting."

Under the Intoxicating Liquor Act 2000, those supplying alcohol to people under
the age of 18 are liable to be fined or have their premises closed for a
specified period.

A report by the European School Project Survey on Alcohol and Other Drugs,
published Tuesday by the World Health Organization, showed Ireland to have one
of the worst under-age drinking problems in Europe.

The figures showed young people were drinking more, and more often, and
highlighted a sharp increase in binge drinking.

Last week Health Minister Michael Martin launched a three-year National Alcohol
Awareness Campaign and said it was time for Ireland to "face up to the reality
of our national drinking problem."

LifePoint sees new drug saliva test on market in May

DANA POINT, Calif., Feb 20 (Reuters) - Lifepoint Inc. <<A
HREF="aol://4785:LFP">LFP.A</A>> said on Tuesday it expects to launch in May a
new device, using technology originally developed by the Navy to detect
biological weapons, for testing drugs and alcohol in a saliva sample.

"Our test is noninvasive and automatic. It enables emergency medical
technicians, paramedics or nurses to quickly test, with a high degree of
sensitivity, for drugs and alcohol," Linda Masterson, the company's chief
executive officer, said at a Roth Capital Partners Conference being held here.

The LifePoint portable testing device takes about five minutes to
simultaneously test for alcohol and five commonly used drugs, including
cocaine, opiates, PCP, amphetamines, and marijuana and to print out the
results.

Masterson noted that the first two applications for the product -- law
enforcement and workplace drug testing -- do not require U.S. Food and Drug
Administration (FDA) approval. The company's third target market -- emergency
medical settings -- will need FDA approval and LifePoint expects to have that
in the third quarter of this year, Masterson said.

Potential North American sales for the three combined markets is $1.5 billion a
year, according to LifePoint.

"This is not like a yes or no urine test. We can test accurately for specific
types of drugs and their quantity," the CEO said.

The LifePoint test is must faster and less expensive to use than traditional
blood testing, which requires laboratory analysis, she added.

"Law enforcement personnel cannot now test for drugs -- they have to take the
person to a hospital, which takes a lot of time and costs several hundred
dollars," Masterson said.

LifePoint's, as yet unnamed, "instrument" will sell for about $5,000, while
disposable cassettes used for each test will cost $20-35.

Fla. tavern settles race case with Md. legislator

TALLAHASSEE (Reuters) - A waitress and a north Florida tavern owner accused of
denying service to a Maryland state legislator because he is black agreed
Tuesday to send letters of apology and pay $500 fines but will face no jail
time on state discrimination charges.

David Holton, owner of Perry Package Store and Lounge, and employee Patricia
Hughes entered agreements with local prosecutors in which the pair admitted to
refusing to serve Maryland lawmaker Talmadge Branch unless he moved to another
section of the bar.

Branch, the head of the Maryland House of Delegate's Black caucus, was visiting
friends Feb. 3 in the paper mill town about 40 miles southeast of Tallahassee,
when he entered the lounge to buy a beer.

Holton's attorney maintained Tuesday that while the waitress used poor
judgement, neither she nor Holton was guilty of discrimination.

Branch told police that Hughes refused to serve him at the bar, directing him
instead to a section where package liquor was sold.

Holton and Hughes told police that Hughes directed Branch there because the
lounge was being cleaned, but police noted that white patrons continued to
enter the lounge as they interviewed Branch at least an hour following the
incident.

Florida Gov. Jeb Bush ordered the Florida Department of Law Enforcement to
investigate the incident. The agency turned over its findings last week to
State Attorney Jerry Blair, who announced the agreement early Tuesday evening.

In their agreement, the pair admitted directing Talmadge to another area of the
bar for service. Under Florida law, refusal to serve a patron because of race
is a second-degree misdemeanor, punishable by up to 60 days in jail and a $500
fine.

"This is an appropriate resolution of the criminal charge," Blair said in a
prepared statement. "Other sanctions are being sought by other agencies which
have jurisdiction."

Though Holton and Hughes have settled with state prosecutors on the criminal
charges, other challenges loom. On Tuesday, The Florida Department of Business
and Professional Regulation served Holton with a six-count indictment in an
attempt to revoke his liquor license.

In addition, the Florida Attorney General's office is continuing its
investigation and may file civil charges under the Florida Civil Rights act.
The U.S. Attorney's office is also investigating the matter for possible
violations of federal civil rights guarantees.

"We're concerned that there is a shotgun here trying to kill a mosquito,"
Holton's attorney Greg Parker said. "We're facing several different fronts."

NEW YORK--(BUSINESS WIRE)--Feb. 20, 2001

UC-Davis Clinical Research Confirms Health Benefits of 100 Percent Apple Juice
& Apples in Adults

Clinical nutrition researchers at the University of California at Davis
(UC-Davis) have just discovered that nutrients in apples and 100 percent apple
juice can help slow a key process -- oxidation -- in adults that can lead to
heart disease, similar to the benefits seen with tea or red wine.

You can reach the story directly by going to

http://www.newstream.com/cgi-bin/display-story.cgi?2130

[J2jurado]

SAB, Interbrew in Talks About Bass Alliance, Newspaper Reports
(Business Day 21/2 1)

Johannesburg, Feb. 21 (Bloomberg) -- South African Breweries Plc may be in
merger talks with Belgian's Interbrew that could see SAB taking a controlling
stake in Interbrew's Bass Brewers Ltd. in the U.K., Business Report said,
citing market speculation.

U.K. regulators last month said Interbrew, the maker of Stella Artois and
Rolling Rock beer, had too much control over the U.K. market. They ordered
Interbrew to sell Bass less than a year after it had bought the company for
$3.4 billion.

If SAB, the world's fifth largest brewer, and Interbrew conclude a ''paper
marriage,'' Business Day said, the Belgian brewer would take 20 percent of SAB
in return for a controlling stake in Bass.

Shares in SAB, which lost out to Interbrew in the original Bass auction, have
climbed 8 percent since March on speculation the company may make another bid
for Bass.

Yesterday, traders said an Interbrew-SAB alliance, with SAB issuing paper
instead of cash for Bass, was more likely, Business Day said. Such a move will
make SAB the second-biggest brewer in the U.K., while bringing Interbrew into
compliance with the U.K. regulators' order, the newspaper said.

SAB's share price closed 1.7 rand, or 2.8 percent, down at 59.9 rand yesterday.

CSFB cuts Boston Beer to hold

NEW YORK, Feb 21 (Reuters) - Credit Suisse First Boston said on Wednesday it
lowered its rating on Boston Beer Co Inc. <<A HREF="aol://4785:SAM">SAM.N</A>>
to hold from buy, after the beer company posted slowing volume momentum from
the company's flagship Samuel Adams Boston Lager and other brands.

No further details were available.

Grolsch Full-Year Profit Rises 11.6% to 27 Mln Euros on Exports

Enschede, Netherlands, Feb. 21 (Bloomberg) -- Royal Grolsch NV, the Dutch
brewer known for its swing-top bottles, said full- year profit rose 11.6
percent led by demand in the U.S. and U.K.

Net income rose to 27 million euros ($24.5 million), or 1.6 euro a share, from
24.2 million euros, or 1.43 euro a share in 1999. That's above the 10 percent
gain forecast on average by five analysts surveyed by Bloomberg.

Grolsch's sales growth last year was hampered by damaged to a brewery caused by
an explosion at a fireworks warehouse in Enschede, Netherlands. Total volume
sales rose 1 percent in 2000, led by a 9 percent increase in volume sales
abroad, the company said in an emailed statement.

S&N to close Edinburgh bottling plant,axe 170 jobs

EDINBURGH, Feb 21 (Reuters) - British brewing and pubs group Scottish &
Newcastle Plc said on Wednesday it would be closing its Scottish Courage
bottling and canning plant in Edinburgh over the next 18 months with the loss
of 170 jobs.

However, brewing operations at the 27-year-old Fountain Brewery, which produces
over one million barrels of beer per annum, would be boosted by an eight
million pound investment to ensure it kept pace with modern industry standards.

The slimmed down plant, which is home to favourite Scottish brew McEwans, will
employ around 100 staff.

S&N said it would be focusing its bottling and canning operations at other
sites across Britain because they are closer to its biggest market.

Belgium to file complaint against UK on Interbrew

By Katie Nguyen

BRUSSELS, Feb 21 (Reuters) - Belgium said on Wednesday it would challenge
Britain's decision to overturn Belgian beer giant Interbrew's 2.3 billion pound
($3.32 billion) acquisition of Bass Brewers last year.

In one of Britain's toughest competition rulings, the UK government last month
ordered the Belgian brewer, best known for its Stella Artois lager, to sell all
British Bass operations in one package to an approved buyer to meet anti-trust
requirements.

The Bass deal had raised competition concerns because Interbrew would have a 32
percent leading share of the UK beer market if it merged the brewing units of
Whitbread, also acquired last year, and Bass.

A spokesman for Belgian Economic Minister Charles Picque said the government
planned to file a complaint with the European Court of Justice against the UK
ruling.

"We will file a complaint in six weeks," ministry spokesman Olivier Pierre told
Reuters. He declined further comment, but said the matter was under discussion
by the federal government's core cabinet.

Interbrew has protested the UK's remedy as disproportionate to the competition
concerns and filed a judicial review on February 2 in a bid to buy time -- to
improve the business in order to win a better sale price -- and flexibility as
to who would be an acceptable buyer.

But the Belgian group, which had become the world's number two brewer by volume
with the Bass acquisition, has said it won't seek to overturn the UK ruling.

A preliminary ruling by the European Court of Justice could take up to 18
months to be delivered.

Britain had said the Bass purchase was against public interest and would have
led to higher beer prices and an effective duopoly with Britain's biggest
brewer Scottish & Newcastle.

A UK Department of Trade and Industry spokeswoman told Reuters on Wednesday:
"We are confident that the Commission's decision to refer the Interbrew/Bass
merger back to the UK and our decision to block the merger was taken correctly
and in accordance with the relevant laws and procedures."

Interbrew shares rose 1.92 percent to 31.34 euros at 1029 GMT. Since listing at
an offer price of 33 euros, Interbrew hit a low of 25.60 euros on January 24.
It reached a high of 38.10 euros on December 5.

Legal experts have said Interbrew's chances of overturning Britian's ruling
were slim to non-existent, citing the historic precedent and the specifics of
the case.

(additional reporting Leslie Adler in Brussels, Janet McBride in London)

BBH to sell Lithuanian brewer Kalnapilis

By Peter Mladineo

VILNIUS, Feb 21 (Reuters) - Baltic Beverages Holding (BBH) said on Wednesday it
will sell Lithuania's third-largest brewer Kalnapilis to meet a competition
authority ruling, with the search for a buyer expected to start in a few weeks.

"We have, after a very thorough examination, come to the conclusion that the
optimal decision is to sell Kalnapilis," Christian Ramm-Schmidt, CEO of BBH,
told a news conference.

In November Lithuania's competition authority asked BBH to sell one of its
three Lithuanian holdings after Danish Carlsberg

bought 50 percent of the firm from Norway's Orkla last year, with the other 50
percent owned by Finnish Hartwall.

Carlsberg currently owns Lithuania's number one brewer Svyturys and BBH owns
numbers two and three, Utenos and Kalnapilis. Combined, the three firms hold
around 70 percent of the local beer market.

Ramm-Schmidt said the process of finding a buyer for Kalnapilis, itself with
some 20 percent of the local market, will start in "a few weeks." He declined
any comment on what price BBH was seeking.

The Kalnapilis sale would give any potential buyer the number two position on
Lithuania's small-but-lucrative beer market, which grew some 13 percent in
2000, year-on-year.

Finnish Olvi with over 50 percent of number five brewer Ragutis and Danish
Bryggerigruppen, with a stake in fourth-ranked Vilniaus Tauras, have said they
are following the sale with interest.

But sector analysts said the possibility of the stake going to a company
without any current presence on the Lithuanian market cannot be ruled out.

Kalnapilis shares, suspended on Wednesday, closed at 5.20 litas on Tuesday, an
85 percent rise from November.

Dealers said investors were betting on an eventual minority buyout offer from a
new buyer, but a lack of concrete details on the sale will likely leave the
share volatile.

"People will be trading on rumours and I don't expect there will be a big
downside because people in these situations are looking to gain," a fund
manager said.

Kalnapilis saw a year-on-year profit drop of nearly 7 million litas -- to 3.3
million litas ($825 million) in 2000.

Asahi Breweries slips into red in 2000

TOKYO, Feb 21 (Reuters) - Japan's second-largest brewer, Asahi Breweries Ltd,
on Wednesday said it fell into the red last year because of losses on
securities holdings and costs from a hole in its pension fund.

The net loss of 15.71 billion yen ($136 million) in calendar 2000 was 2.71
billion yen bigger than Tokyo-based Asahi forecast in October and compared with
a 1999 net profit of 4.08 billion.

But it forecast a rebound this year to a profit of 12 billion yen as Asahi
enters the lucrative but crowded market of low-malt brews, which are taxed at
lower rates than regular beer and as a result have grown popular in Japan due
to their low prices.

Japan's beer market in 2000 suffered its second year of declining domestic
shipments, which industry experts blame on the sluggish economy and stubbornly
weak consumer spending.

Shipments of beer and low-malt brews at Japan's five major brewers totalled
7,099,830 kilolitres in 2000, down 0.7 percent, while in December alone
shipments fell 4.9 percent, the fourth straight month of falls, industry
sources said in January.

But while pure beer shipments fell by 7.3 percent in December, those of
low-malt brews climbed 5.6 percent, jumping a further 9.6 percent in January --
their 56th straight month of rises due largely to new products and vigorous
sales campaigns.

In January, industry sources said they expected Asahi to begin selling low-malt
beers from February, challenging local frontrunners Sapporo Breweries Ltd,
Kirin Brewery Co Ltd, unlisted whiskey distiller Suntory Ltd and Okinawa-based
Orion Breweries.

Asahi also on Wednesday said it decided to buy back up to 344,000 shares, or
0.07 percent of the total outstanding, for a stock-option scheme being set up
for 34 executives. The buy-back plan is subject to shareholder approval at a
meeting on March 29.

The executives will be able to exercise the stock options between January 1,
2005 and March 28, 2011.

Asahi, which had a 47.9 percent share of the beer market last September, said
in October it would cut 1,000 jobs by December 2004 from a group work force of
11,000.

The result came after the stock market closed. Asahi Breweries' shares finished
at 1,116 yen, down 1.06 percent on the day and 3.7 percent from a year ago.

The Boston Beer Company Promotes Vice President of Operations Jeffrey White to
Chief Operating Officer

BOSTON, Feb. 21 /PRNewswire/ -- The Boston Beer Company, Inc. (NYSE: <A
HREF="aol://4785:SAM">SAM</A>) announced today the promotion of Vice President
of Operations Jeffrey White to Chief Operating Officer (COO). Mr. White, 43,
joined The Boston Beer Company as Distribution Manager in 1989, held the
positions of Operations Manager and Director of Operations and was promoted to
Vice President of Operations in 1997. Prior to joining The Boston Beer
Company, Mr. White gained industry experience at both Anheuser Busch and New
Amsterdam Brewing Company.

"We are happy to promote one of our most valued and longstanding employees.
Jeff is a natural leader and motivator of people. He has been a key figure in
the Company's growth," said Jim Koch, founder and chairman of The Boston Beer
Company.

As COO, Mr. White will continue to head the operations and the distribution of
Samuel Adams and Allied Brands, including the operation of The Samuel Adams
Brewery in Cincinnati, Ohio. His duties will expand to include responsibility
for the legal and human resources departments.

"Jeff's appointment strengthens our management team at The Boston Beer Company
and will allow me to focus more time against brand and organizational
development," said Martin Roper, president and CEO of The Boston Beer Company.
"Over the last 12 years, Jeff's many contributions have gone far beyond what
one expects from an operations manager. In particular, he has contributed
immeasurably to preserving and nurturing the Company's unique culture, and the
mentoring of our employees. His leadership of our strong human resources,
legal and operations teams, will help take our organization to the next level."

Mr. White is married to the former Amy Ford, whom he met in 1992 when they were
both working for The Boston Beer Company. They live in Marshfield and have two
children. They play dominoes at least three nights a week.

Governors' Spouses Join MADD and Dallas Students for New Protecting
You/Protecting Me Program Event

First Elementary School Alcohol Use Prevention Curriculum Taught By Local High
School Students

DALLAS, Feb. 20 /PRNewswire/ -- Governors' spouses from across the country join
Mothers Against Drunk Driving (MADD) National President Millie I. Webb in
Dallas today to help implement MADD's new elementary school alcohol use
prevention program: Protecting You/Protecting Me. The innovative program,
based on cutting-edge brain research, is the only school curriculum that not
only educates about the dangers of underage alcohol consumption, but also
teaches children how to protect themselves in tough, real-life situations such
as what to do when faced with riding with an adult drinking driver.

In an effort to expand the program to reach children across the nation, the
First Ladies and staff from eight states (Florida, Georgia, Michigan, Ohio,
Pennsylvania, Tennessee, Wisconsin and Wyoming), along with representatives
from the National Highway Traffic Safety Administration and the National
Institute on Alcohol Abuse and Alcoholism (NIAAA) will participate in a
discussion and training on the MADD Protecting You/Protecting Me curriculum and
observe lessons taught by Dallas' Bryan Adams High School students to Reinhardt
Elementary School students in the first, second, third and fifth grades.

"MADD has successfully partnered with governors' spouses throughout the country
as part of the NIAAA initiative designed to educate and protect children from
the damages caused by alcohol use," said Webb. "By participating in the MADD
Protecting You/Protecting Me program, we hope the First Ladies will become more
knowledgeable of the curriculum and possibly help expand the program in their
home states."

The program starts amidst staggering recent research indicating that two of
every three children who die in alcohol-related car crashes died while riding
as passengers in vehicles driven by intoxicated adult drivers.

"Many times young people don't know how to handle tough situations," said Webb.
"They are not only faced with their own decisions about alcohol but are also
faced to make difficult decisions about their own safety when riding with
intoxicated adults. This program will help them to be better prepared and help
keep our children safe."

According to recent statistics, almost 700,000 Texas school children use
alcohol. In 1998, the Texas Commission on Alcohol and Drug Abuse (TCADA)
released a survey showing the average age of first use of beer was 12.3 and
13.3 of liquor. Research shows that the risk for alcohol and other drug use
skyrockets when children enter the 6th grade, between the ages of 12 and 13. To
be effective in preventing alcohol use by teenagers, MADD's purpose is to reach
out and educate children in grades one through five.

Protecting You/Protecting Me helps reach children before they have fully shaped
their attitudes and opinions about alcohol use by youth and their role in
preventing it. The curriculum focuses on the effects of alcohol on the
developing brain during the first 21 years of life. The lessons reinforce the
fact that the brains of children and adolescents are still maturing and respond
to alcohol in a dramatically different fashion than adults, putting children at
a much higher risk. The curriculum provides a series of 42 lessons, eight
lessons for each grade one through four and ten lessons in grade five.

"The goal of Protecting You/Protecting Me is to prevent injury and death of
children and youth due to underage consumption of alcoholic beverages,
vehicle-related risks and alcohol poisoning," added Webb.

The MADD Protecting You/Protecting Me curriculum is MADD's latest nation- wide
effort to prevent alcohol use by youth. The Peer Assistance Network of America
(PAN America) is partnering with MADD to pilot the curriculum in Texas,
utilizing high school students to teach the curriculum to elementary school
students. General Motors funded the development of the program.

The Protecting You/Protecting Me curriculum has been tested in Texas, Montana,
New Mexico, Michigan, Connecticut, California and Guam. Results of the test
indicated the program increased the students' knowledge of vehicle- related
risks and the effects alcohol has on the brain. The tests also revealed that
the curriculum changed the students' attitudes about underage alcohol
consumption. The elementary students indicated that they enjoyed having the
high school students teach the lessons, thought they were well prepared and
presented the information effectively.

Nationally headquartered in Irving, TX, MADD is a non-profit organization with
approximately two million members and 600 affiliates nationwide. MADD's
mission is to stop drunk driving, support the victims of this violent crime and
prevent underage drinking. For additional information about MADD, Protecting
You/Protecting Me, contact Chase Tidwell at 214-744-6233, ext. 4558 or visit
the Web site at www.madd.org or call (214) 744-MADD.

SOURCE Mothers Against Drunk Driving

CO: Mothers Against Drunk Driving; National Highway Traffic Safety
Administration; National Institute on Alcohol Abuse and Alcoholism; Bryan
Adams High School; Reinhardt Elementary School

Maine Mulls Cigarette Butt Deposit

By GLENN ADAMS

21 February 2001 AUGUSTA, Maine (AP) - They pile up outside buildings in
unsightly groups - smelly reminders of an unhealthy habit. But if a Maine
legislator gets his way, discarded cigarette butts could be worth cash.

Under a proposed law thought to be the first of its kind in the nation, smokers
would pay a surcharge for every cigarette pack they buy in Maine. Then they
could redeem the butts for a nickel each.

``It's not a joke,'' said the bill's sponsor, Rep. Joseph Brooks, who modeled
the legislation after Maine's bottle-return law, which requires consumers to
pay 5-cent deposit on most soft-drink and beer bottles.

With more and more smokers forced outside, Brooks noted that piles of butts
appear where pockets of puffers congregate. And the trash tends to stick around
because, he said, filters are not biodegradable.

The problem seems to be most bothersome for bar owners, who are tired of
picking up piles of butts outside their businesses and have jumped to back
Brooks' effort.

Here's how the bill would work: Cigarette manufacturers would mark filters on
each cigarette sold in Maine with 5-cent deposit notices. Smokers would pay an
additional $1 a pack in deposits.

After smoking, they would collect the butts and take them to bottle redemption
centers. Clerks would inspect the butts to make sure they are properly marked
for refunds.

``It sounds like a nasty job to me,'' said Rep. Harold Clough, a member of the
Business and Economic Development Committee, which heard arguments Tuesday
about the so-called ``Returnable Butt Bill.''

Maine smokers, who consume 2.2 billion cigarettes a year, would be entitled to
all their deposits back. But Brooks and others estimate that many of the butts
would be flung aside never to be redeemed.

The money not returned to smokers represents new revenue for the state, about
$50 million a year. Brooks said it could be spent on health, environmental or
other programs.

The bill follows a proposal by Gov. Angus King for a 26-cent per pack increase.
In 1997, the tax was doubled to 74 cents a pack. The latest increase is part of
King's health agenda.

Nancy Desmaris, who runs a redemption center in Hampden, said the proposal
would also give new revenue to businesses like hers that haven't seen their
handling fees rise in years, while overhead costs have risen.

Some critics of the bill suggested that old butts could carry enough bacteria
to make handlers sick. Desmaris said she wasn't bothered by that fear, saying,
``This is what we do.''

The proposal calls for the creation of a Returnable Tobacco Products Fund that
would help disburse the money. It was not immediately clear what the redemption
centers would do with the collected butts.

Brendan McCormick, manager of media relations for Philip Morris Inc., said he
was unfamiliar with the bill and was unable to comment on it.

The smell of stale cigarettes wafted through the legislative committee room as
members got an earful from those who say the idea is unworkable, unhealthy,
draconian and antibusiness.

The Maine Merchants Association believes a deposit law adding $10 to a carton
of cigarettes would be one more reason for shoppers - especially those
bordering New Hampshire - to spend their money out of state.

The group's executive vice president, Jim McGregor, warned that the law could
spawn a black market for cigarettes from outside Maine that are attractive -
especially to younger smokers - because they cost less.

But the bill's backers, who handed out informational packets that included
plastic bags of smelly butts, urged lawmakers to focus on getting rid of
litter.

Peter Daigle, of Newburgh, who supports Brooks' effort, said students recently
picked up 10,500 butts in Waterville. Cigarettes are the most common form of
litter that volunteers scoop up in coastal cleanups, supporters said.

Brett Lafayette, of Winterport, said the time has come for his fellow smokers
to realize that, without knowing it, they're making a mess at some of the most
scenic sites in Maine and elsewhere.

``We're not aware that it's pollution,'' said Lafayette, who demonstrated for
lawmakers how he collects his smoked butts in a cigarette pack.

On the Net:
The Returnable Butt Bill:
http://janus.state.me.us/legis/bills/billtexts/LD025801-1.asp
Maine Chamber of Commerce: http://www.mainechamber.org
Philip Morris site: http://philipmorris.com/tobacco-bus

[J2jurado]

BrauHolding, Heineken Call Press Briefing Amid Alliance Talks

Munich, Feb. 21 (Bloomberg) -- Bayerische BrauHolding AG of Germany and
Heineken NV, Europe's biggest brewer, called a press briefing for Thursday, a
week after they said they're in talks about a German link. The topic of the
briefing wasn't given.

Heineken Chief Executive Karel Vuursteen, Schoerghuber Stiftung & Co. Holding
KG head Stefan Schoerghuber and Wolfgang Salewski, the head of BrauHolding, a
Schoerghuber unit, will take part in the briefing, the companies said in a
faxed statement.

BrauHolding, which failed at its attempt to merge with rival Brau und Brunnen
AG, is seeking ways to expand outside its domestic market, as German beer

consumption declines. Heineken is trying to add more brands.

UBS Withdraws Wolverhampton Buyout Bid, Times Says

(The Times 2/21 30)

London, Feb. 21 (Bloomberg)-- Wolverhampton & Dudley Plc's shares fell 3.9
percent after the Times said UBS Capital pulled its support for a management
buyout of the U.K.'s largest regional brewer. The paper didn't disclose its
source.

UBS Capital's withdrawal leaves Royal Bank Development Capital Ltd., the buyout
team's other main backer, to maintain the offer for the owner of Banks's and
Pedigree ale, the paper said.

Wolverhampton & Dudley spokesman Keith Hann declined to comment and UBS Capital
wasn't available.

David Thompson, managing director of the U.K. brewer, sought backing for a
buyout after rejecting Noble House Leisure Ltd.'s 500 pence-a-share offer in
September. A strategic review of the company, initiated five months ago, is
still under way, Hann said.

The shares fell 18.5 pence to 451.5p. Before today, the stock had advanced 35
percent in a year.

Wolverhampton & Dudley, which owns about 1,750 pubs, has suffered amid
heightened competition from rivals including J.D. Wetherspoon Plc, which has
opened bigger, more modern bars and slashed beer prices to attract drinkers.

Noble House, backed by the venture-capital firm Botts & Co., is expected to
sell Wolverhampton & Dudley's 900 leased pubs to Enterprise Inns Plc for more
than 400 million pounds ($578 million) if it secures the purchase.

Miller Readies New Weinhard's Beer Ads, Advertising Age Reports

(Advertising Age 2/21)

New York, Feb. 21 (Bloomberg) -- Philip Morris Cos.'s Miller Brewing Co. is
expected to unveil its advertising campaign for Henry Weinhard's, its
Northwestern regional beer brand in the next week, Advertising Age reported.

Ads will run regionally on sports and late-night television starting Feb. 26.
The campaign places drinkers in Northwest settings and uses the ``Beer Means
More Here,'' tag. The ad campaign is managed by advertising group Wieden &
Kennedy, based in Portland, Oregon, which also handles Miller High Life.

Weinhard's is distributed in 10 states. Miller, which acquired the brand in
1999, felt the super-premium brand had languished with the introduction of
pricey microbrews, Advertising Age said.

Milwaukee-based Miller spent $432,000 on the brand in the first 11 months of
last year and ad spending is expected to increase about 15 percent, Advertising
Age reported.

Winemaker looks to take over rival in global business strategy

Thursday 22 February, 2001

Australia's largest winemaker, Southcorp, has confirmed it is moving to
acquire rival, Rosemount Estates.

Southcorp's executive general manager of corporate affairs, Glen Cunningham
says if a merger goes ahead, the company will have more than half of the
country's export wine market.

He says discussions with Rosemount have not yet concluded.

Mr Cunningham says at the moment Southcorp is Australia's largest individual
wine exporter with around 30 per cent of the market and a merger with
Rosemount would lift it to more than 50 per cent.

"For us it would represent a significant extension of our strategy to build a
global wine business, built around premium brands," he said. © 2001 Australian
Broadcasting Corporation.

Montana Group Wants Market Panel to Investigate Lion Purchases

Wellington, Feb. 22 (Bloomberg)-- Montana Group N.Z. Ltd. wants the nation's
Market Surveillance Panel to investigate whether Lion Nathan breached stock
exchange rules when it recently bought a 51 percent stake.

The panel is independent of the stock exchange, and is responsible for
monitoring whether companies obey listing rules.

Earlier this month, Lion moved to 51 percent of the nation's largest wine
market from 28 percent, outbidding Allied Domecq Plc. The British company
complained that Lion bought shares from institutions before it was entitled to.

Under exchange rules, Allied filed a complaint with Montana. Montana's
independent directors obtained legal advice, and agree that Lion may have
breached a listing rule, they said in a statement.

Montana ``considers the issue should be determined by a duly constituted body
under the stock exchange regulatory regime'' and requested the panel form a
committee ``to conduct an investigation into the dealings between Lion Nathan
and other Montana shareholders'' in the period before Feb. 9.

``We have consistently maintained that we have done everything in accordance
with the rules,'' said Lion spokesman Warwick Bryan. No panel officials were
available to comment.

Austrian drinks group eyes growth in CEE

VIENNA, Feb 21 (Reuters) - Austrian beer and soft drinks group BBAG is pouring
more money into central and eastern Europe to secure the group's expansion amid
flat demand at home.

Chief Executive Karl Bueche said the group would invest 130 million euros this
year in both foreign and domestic operations, particularly on consolidating its
latest acquisitions in Romania, Hungary and Poland.

"For us it is clear that growth creates value and ever since 1993 we have
invested money where there was growth," Bueche told Reuters in an interview.

BBAG with its brewing arm Brau Union says it has become the second-largest
brewer in central Europe following an aggressive acquisition drive.

"There are always breweries coming up for sale, but we have precise qualitative
requirements," he said in reference to future purchases in the region.

"We are not engaged in any concrete negotiations right now -- the real pearls
have already been snapped up."

While the group was against making acquisitions which would threaten to destroy
shareholder value, it is bent on becoming market leader in central Europe not
only in terms of volume but also profitability.

"In Hungary we are second by market share but it is very likely that we lead on
profitability and we'll reach that stage in Romania too by the end of 2001,"
Bueche said.

BBAG dominates the Austrian beverages market with around 56 percent market
share and has the largest chunk of the Romanian beer market with almost 40
percent.

In Hungary and Poland it has secured 26 and seven percent of the beer market
respectively.

Bueche said Interbrew, South African Breweries and Heineken

were the Austrians' main competitors in central and eastern Europe.

BBAG hopes to nurture growth in the relatively saturated domestic market by
concentrating on local speciality beers and its fruit juice brands. Better
results should be achieved by improving profitability margins rather than by
increasing overall volumes.

BBAG posted preliminary 2000 earnings before interest and tax (EBIT) of 66.45
million euros, marginally up on the previous year. It said it expected
significantly higher profits for 2001.

Guangdong Investment to Hold Onto Brewery, Tannery, Paper Says

(South China Morning Post, 2/22, Business Post, p.2.)

Hong Kong, Feb. 22 (Bloomberg) -- Guangdong Investment Ltd., a Hong Kong
publicly traded property and trading firm, said it will not sell two of its
subsidiaries because they are making money, the South China Morning Post
reported, citing the company's director Ye Xuquan.

Ye said the company will not sell Guangdong Brewery Holdings and Guangdong
Tannery Ltd., both more than 70 percent owned by GDI, shares in which rose last
week on speculation that their parent would sell, the paper said. Guangdong
Brewery shares rose 16 percent last Thursday to 36 Hong Kong cents, while the
Tannery rose 3.6 percent Tuesday to 17 Hong Kong cents.

GDI said last week it reached agreement with Hi Sun Ltd., a privately held
business consultant, to sell its entire 57.16 percent stake in Guangdong
Building for HK$31 million ($4 million), the paper said.

GDI is a unit of Guangdong Enterprises (Holdings) Ltd., which failed in 1998
under about $4.5 billion of debt. Creditors agreed to a restructuring package
in December.

Scottish & Newcastle Cuts Jobs at Edinburgh Brewery

Edinburgh, Feb. 21 (Bloomberg) -- Scottish & Newcastle Plc, the U.K.'s largest
brewer, will cut 170 jobs at its Fountainbridge brewery in Edinburgh, reducing
the workforce by almost two-thirds.

The Edinburgh-based company will reduce staff at the plant, which brews
McEwan's beer, from 270 to 100 over the next 18 months. Scottish & Newcastle is
moving the jobs, in bottling and canning, to its five other U.K. breweries, the
company said in a faxed statement.

Scottish & Newcastle, which makes Kronenbourg beer, said last month it was
planning to reduce its workforce by 1,300. The Edinburgh job losses come on top
of those already announced.

The company plans to invest 8 million pounds ($11.6 million) in a new keg
packaging operation at the Fountainbridge brewery.

Scottish & Newcastle shares rose 6 pence, or 1.2 percent, to 514.

Interbrew joins Belgian Bel-20 in ending flat

BRUSSELS, Feb 21 (Reuters) - Beer giant Interbrew joined the Bel-20 index in
ending flat on Wednesday as investors did not see Belgium succeeding in
preventing Britain from forcing the brewing giant to sell its Bass assets,
dealers and analysts said.

"The market does not give it much of a chance in succeeding," one analyst said.

Interbrew, the second most actively traded stock on the bourse, closed 0.33
percent higher after the Belgian government took the exceptional step of
challenging Britain's decision. It plans to file a complaint at the European
Court of Justice within six weeks.

The Bel-20 blue chip index remained within a tight trading range throughout the
session to end 16.10 points or 0.54 percent lower at 2,978.32.

Financial stocks such as index heavyweight Fortis ended even lower as hopes of
further cuts to interest rates evaporated with the release of
higher-than-expected inflation figures in the United States.

"Inflation is high so that there is less of a chance that we are going to see a
cut in interest rates," the analyst said.

Interbrew gained 0.33 percent to end at 30.85 euros after trading as high as
31.50 euros earlier in the session.

"It is not a cheap stock anymore," said one trader, explaining how investors
were reluctant to jump onto the stock on a moment's notice.

Fortis fell 2.2 percent at 31.60 euros, while peer KBC Bancassurance lost 2.2
percent at 48.85 euros.

But Dexia rose 1.61 percent to close at 177.20 euros because investors often
use it as a safe haven, given its specialty in lending money to public
institutions, according to one dealer. "It has a very good credit portfolio,"
he said.

Telecommunications network integrator Telindus, the only significant technology
stock in the index, reached its lowest level in three years, ending 2.07
percent lower at 13.22 euros. Telindus has been closely following behind the
sinking U.S. Nasdaq market because it is a big seller of Cisco Systems
equipment in Europe.

"It does't have a bottom anymore," said one trader. "Traders have started
shorting it."

Ion Beam Applications, maker of particle accelerators used in cancer treatment,
gained 3.72 percent at 26.50 euros. Earlier in the day, it opened a new
facility in Belgium. Two days earlier, it announced plans to buy a controlling
stake in a U.S. company to expand into the radioactive drug market.

Grolsch Full-Year Profit Rises 11.6% to 27 Mln Euros on Exports

Enschede, Netherlands, Feb. 21 (Bloomberg) -- Royal Grolsch NV, the Dutch
brewer known for its swing-top bottles, said full- year profit rose 11.6
percent led by demand in the U.S. and U.K.

Net income rose to 27 million euros ($24.5 million), or 1.6 euro a share, from
24.2 million euros, or 1.43 euro a share in 1999. That's above the 10 percent
gain forecast on average by five analysts surveyed by Bloomberg.

Grolsch's sales growth last year was hampered by damaged to a brewery caused by
an explosion at a fireworks warehouse in Enschede, Netherlands. Total volume
sales rose 1 percent in 2000, led by a 9 percent increase in volume sales
abroad, the company said in an emailed statement.

Can Energy Drinks Create a Buzz in the US?

LONDON, Feb. 21 /PRNewswire/ -- http://www.just-drinks.com -- Producers of
energy drinks could make the US their next lucrative market if distribution
problems and the FDA don't stand in their way.

A feature at http://www.just-drinks.com/features-detail.asp?art=389 explains
that the energy drink sector "is not a passing fad" but "the thin edge of a new
wedge re-shaping consumer behaviour", according to Zenith International's UK
Energy and Sports Drink Report.

The sector has seen huge success in the UK with phenomenal growth since 1998,
over 20 new brands launched in 2000, and annual sales which now exceed 700m
pounds sterling a year. But with so many brands on the market and the threat
of a drop in price, many leading producers are already pushing hard in other
markets, particularly the US.

Although the US has been slow on the uptake until now, Ari Koivula, managing
director at Red Devil told just-drinks.com: "Within the next 12 months, the US
is where the biggest growth in energy drinks will be seen". Red Bull, Europe's
leading brand, claims to have 50% distribution there after its US launch in
1997.

Despite its potential, however, the American market has its setbacks.
Historically there was a problem for producers in the US seeking FDA approval
on ingredients such as taurine and glucuronolactone in soft drinks. As a
result, the FDA may introduce a ruling to make producers adjust their
promotional claims.

Distribution presents another problem. The US clubbing culture is very
localised, and selling to a small number of outlets placed far apart
geographically is costly. Foreign companies will have even more difficulty
increasing distribution in the US if they do not have a permanent presence in
the country.

Even so, Fiona Mollet at Red Bull said that the brand "has taken off in the US
and the plan is to increase distribution over the next year or two". She went
on to say that a US plant is something Red Bull "will have to look at".

For the full story, click here:

http://www.just-drinks.com/features-detail.asp?art=389

Venezuela Polar $510 Mln Offer for Mavesa Is Approved

Caracas, Feb. 21 (Bloomberg) -- Venezuela's Empresas Polar SA said its $510
million tender offer for cross-town rival Mavesa SA will start today, after it
received final approval from the U.S. Securities and Exchange Commission.

Polar is offering $8.50 for each Mavesa American depositary receipt, and 99
bolivars ($0.1417) for each share. Polar made its offer Jan. 22 and has been
waiting since then for approval to complete the purchase.

The start of the tender also diminishes the likelihood of a competing bid,
analysts said.

``A second bid cold occur, but I don't see it happening,'' said Alex Dalmady,
managing director of research firm InvestAnalysis. National newspapers have
repeatedly reported that Nestle SA, the world's largest food company, was
considering a counter offer. Nestle declined comment on the report.

Privately held Polar's acquisition of Mavesa will allow it to strengthen its
product line as the two companies have many complementary offerings. Polar is
one of the country's largest processors of the corn meal used to make the
country's arepa, a bread-like patty, while Mavesa makes margarines and sauces.

The tender offer will run three weeks, the company said in a press statement.

Polar, which also owns the country's largest brewer and is the bottler for
PepsiCo Inc., also said in its offer it expects to expand Mavesa's beverage,
seafood and other food lines if its offer is successfully completed.

The company will also study whether to keep Mavesa's line of cleaning products.
Many analysts expect the line, which includes Las Llaves soap and laundry
detergent, to be sold.

Mavesa's American depositary receipts will also be delisted if the tender is
successful, Polar said. Mavesa's shares will remain on the Caracas Stock
Exchange.

Mavesa shares were unchanged at 98 bolivars in early afternoon trading, while
its American depositary receipts fell 0.5 percent to $8.50.

Each ADR is equal to 60 shares.

Pyramid Breweries Inc. Declares $.044 per share Quarterly Cash Dividend

SEATTLE--(BUSINESS WIRE)--Feb. 21, 2001--Pyramid Breweries Inc. (Nasdaq:<A
HREF="aol://4785:PMID">PMID</A>) today announced its Board of Directors has
declared a quarterly cash dividend of $.044 per common share, payable on April
16, 2001 to shareholders of record on March 30, 2001.

Pyramid recently reported its second consecutive year of sales growth, with net
sales increasing 6% to $28.6 million for 2000. In addition, the company
reported net income for the first time since 1996. Net income for 2000 was
$33,000, which was $616,000 higher than the prior year net loss of $583,000
(after adjusting for non-recurring charges of $3.8 million). Earnings before

interest, taxes, depreciation, amortization and non-recurring charges increased
14% to $2.5 million for 2000.

"We increased the dividend for the current quarter to $.044 from

04 for the prior quarter to reflect the improvement in earnings," said Martin
Kelly, Chief Executive Officer. "We are pleased that the strategic changes made
in the fourth quarter of 1999 have resulted in improved earnings and dividends
for our shareholders," added Kelly. The company initiated its dividend program
in the fourth quarter of 1999. The company believes that a portion of the
dividends to be paid in 2001 may be a return of capital for Federal income tax
purposes.

Pyramid Breweries Inc. is one of the leading brewers of specialty,
full-flavored beers and sodas, produced under the Pyramid and Thomas Kemper
brand names. Pyramid also operates two local breweries and restaurants, under
the Pyramid Alehouse name, in Seattle, Washington, and Berkeley, California.
For more information, visit www.PyramidBrew.com.

Statements concerning future performance, developments or events, concerning
potential sales, restaurant expansion, production capacity, and any other
guidance on future periods, constitute forward-looking statements which are
subject to a number of risks and uncertainties which are described in the
company's filings with the Securities & Exchange Commission, press releases and
other communications. Actual events and results may differ materially from
stated expectations. -0- http://www.businesswire.com/cnn/pmid.htm

Korea's Lotte to Take Over Cheil Jedang's Beverage Division

Seoul, Feb. 21 (Bloomberg) -- Lotte Chilsung Beverage Co. agreed to acquire
Cheil Jedang's beverage operations for an undisclosed amount, aiming to extend
its dominance in South Korea's soft drink market.

Lotte Chilsung agreed to take over the assets of the operation, which includes
a local licensing agreement for ``Gatorade,'' officials at both companies said.
The final price will be set following a due diligence scheduled to end in
March.

For Cheil Jedang, the sale allows Korea's largest processed food maker to
divest unprofitable businesses as it concentrates on food, home shopping retail
and pharmaceuticals. Its beverage business, launched in 1984, has suffered
losses since 1995.

``The sale is part of our corporate restructuring effort,'' said Elliot Chung,
a Cheil Jedang spokesman. Cheil Jedang's shares fell 72 percent last year on
concerns that the company had expanded too aggressively into non-food related
businesses, such as Internet and biotechnology.

Lotte Chilsung garnered 35 percent of Korea's total beverage market share last
year, racking up sales of about 920 billion won ($744 million), the company
said.

Modest drinking can protect against heart disease

BOSTON, Feb 21 (Reuters) - A study to be published in Thursday's New England
Journal of Medicine offers new insight into how modest amounts of alcohol can
protect against heart disease, especially in men with the right genetic makeup.

A research team lead by Lisa Hines of Harvard University's School of Public
Health studied the influence of a gene that breaks down alcohol. An inherited
difference in the gene yields two different forms of enzyme that break down
alcohol at different speeds.

In tests that compared 374 male doctors who had just had a heart attack with
770 who had not, researchers looked at the two forms known to process alcohol,
gamma-1 and gamma-2.

Among the study participants, those who consumed alcohol in moderate amounts
had a lower risk of heart disease.

But among those moderate drinkers, those who had the gene that breaks down
alcohol more slowly had a greater reduction in the risk of heart disease and
higher levels of good cholesterol (HDL) than those who had the gene for faster
alcohol absorption.

"The study results support that it is the alcohol in alcoholic beverages that
is responsible for the reduction in risk of heart disease, not other
ingredients," Hines said in a statement.

The researchers said the fact that the enzymes they studied metabolize alcohol
"and no other compounds, suggests that (the alcohol) is responsible for the
protective effect."

The team said they could not determine whether the enzymes offered more
protection to heavier drinkers.

"Our results are only generalizable to populations with light-to-moderate
levels of alcohol consumption," they said.

People who metabolize alcohol slowly may have a lower risk of heart disease,
the Hines team said, "however, they may be at higher risk for other
alcohol-associated diseases."

The findings were part of the Physicians' Health Study, a long-term evaluation
of over 22,000 male physicians begun in 1992 as a test of the benefits of
aspirin and beta carotene.

Constellation Completes Debt Offering

FAIRPORT, N.Y., Feb. 21 /PRNewswire/ -- Constellation Brands, Inc. (NYSE: STZ
and STZ.B) announced today that it issued $200 million aggregate principal
amount of 8.0% Senior Notes due 2008. The Company intends to use the net
proceeds from the sale of the Senior Notes to partially fund the recently
announced acquisition of the Turner Road Vintners wine business. The Senior
Notes have not been registered under the Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the Securities Act
of 1933, as amended.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000918/NYM167LOGO )

Constellation Brands, Inc. is a leader in the production and marketing of

branded beverage alcohol products in North America and the United Kingdom and

is a leading drinks wholesaler in the United Kingdom. Leading brands in

Constellation's portfolio include: Franciscan Oakville Estate, Simi, Estancia,
Almaden, Arbor Mist, Black Velvet, Fleischmann's, Schenley, Ten High, Stowells
of Chelsea, Blackthorn and the number one imported beer, Corona Extra.

First International Wine & Heart Health Summit Convenes in Napa Valley

NAPA, Calif., Feb. 21 /PRNewswire/ -- The First International Wine & Heart
Health Summit drew over 200 physicians from across the United States, Canada
and Europe to Napa Valley where leading medical experts presented their
scientific findings on the heart health effects of moderate daily wine
consumption. "The concept for this summit was developed upon the understanding
that moderate wine consumption has a place in American life, and potentially
can have a favorable impact on coronary heart disease," said Dr. Tedd
Goldfinger, cardiologist, Desert Heart Foundation President and Chairman of the
event. U.S. government dietary guidelines define moderation as one drink a day
for women and two drinks a day for men.

World leaders in wine and heart health shared their scientific findings with
colleagues during the three-day event, February 16-18, 2001 at Silverado
Country Club & Resort. Dr. Curtis Ellison, Professor of Medicine and Public
Health at Boston University School of Medicine, discussed the risk/benefit
ratio for the moderate consumption of wine and other alcoholic beverages in
relation to health. "The epidemiological data are quite clear," stated Dr.
Ellison. "Moderate amounts of alcohol markedly reduce the risk of coronary
heart disease. Such protective effects have been demonstrated in hundreds of
studies throughout the world. Of the mechanisms of such an effect, an increase
in the protective HDL-cholesterol from alcohol is probably most important."

Dr. Serge Renaud, Professor of Cardiology & Research Director at Sagalen
University in Bordeaux, France spoke to the concept he has been famous for
since he discovered the French paradox in 1991. His explanation for the
lower-than-expected coronary mortality in France, where high-fat diets and
smoking are common, is "low-dose alcohol consumption." Another leading
researcher, Dr. Arthur Klatsky, Senior Consultant in Cardiology at Kaiser
Permanente Medical Center in Oakland, California concluded that the "overall
benefit or harm from drinking alcoholic beverages depend upon individual
risk/benefit considerations."

This was a conclusion that drew general agreement from specialists and
attending physicians. Avoidance of heart disease includes lowering
cholesterol, not smoking, exercise and diet. Whether the moderate enjoyment of
wine is included in this equation depends on individual risk/benefit
considerations and should always be discussed with a physician.

Heart disease accounts for 953,000 deaths in the United States each year and is
the leading cause of death in women and men. Over 11.2 million Americans are
alive today who have coronary heart disease, contributing to an annual health
resource burden of more than $100 billion per year.

The Wine & Heart Health Summit benefits the Wine and Heart Health Research
Initiative of the Desert Heart Foundation, a non-profit private foundation
whose mission is to promote the prevention of coronary heart disease and its
complications through education, research and community service.

A benefit gala dinner and live wine auction entitled "An Affair of the Heart"
hosted by Robert and Margrit Mondavi at Robert Mondavi Winery on Saturday,
February 16, raised $120,000 for the Desert Heart Foundation. Bidding was
spirited in the heart-filled Vineyard Room, where Auctioneer Ann Colgin of
Sotheby's auctioned off 29 rare wine lots to the medical faculty and attending
physicians, winery principals from Napa Valley and Sonoma Valley, and Robert
Mondavi Ensemble Club members. Chuck McMinn, Silicon Valley entrepreneur and
owner of Vineyard 29, thrilled the 140 guests with a top bid of $16,000 for a
3-liter bottle of 1997 Screaming Eagle Cabernet Sauvignon. "It's important to
give something back," he said.

A 9-liter bottle of 1997 Robert Mondavi Winery To Kalon Vineyard Cabernet
Sauvignon went for $9,500 to David Freed of Napa. Robert and Margrit Mondavi
then matched the lot for Alan Arora of Pasadena. Additionally a vertical of
Dalla Valle Vineyard Maya magnums (1995-1997) sold for $7,000 to Joe Wender of
Beverly Hills.

"We are delighted with the sum raised to continue our research at Desert Heart
Foundation and thank our sponsors -- Wine Spectator, Desert Cardiology and
Robert Mondavi Winery -- the participating vintners, guests and bidders," said
Dr. Goldfinger. "We are honored to have them join us in the ongoing battle
against heart disease and in promoting a greater understanding of the role that
moderate daily wine consumption plays in its prevention."

Australian Wine Grape Harvest Seen Surging to Record A$940 Mln

Adelaide, Australia, Feb. 22 (Bloomberg) -- Australia is set to harvest a
record A$940 million ($493 million) wine grape vintage as a thirst for the
nation's wines in the U.K. and U.S. prompts growers to plant more vines.

Increased plantings and average grape yields across the nation should see
output rise to 1.29 million tons. That's 16 percent more than last year's
``disappointing'' 1.11 million ton crop, said Lawrie Stanford, a spokesman for
the grower-funded Australian Wine & Brandy Corp. in Adelaide.

``The weather's been really hot, so the vines look a little stressed, but
they're holding up pretty well,'' said Prue Henschke, a viticulturist in South
Australia's premium-growing Eden Valley region. Henschke expects to crush 750
tons for her family's 140-year-old winery, which makes the prize-winning ``Hill
of Grace'' Shiraz brand.

Australia, which accounts for about 4.5 percent of global wine exports, aims to
cement its position as the world's fastest- growing wine exporter by volume.
Wine shipments doubled to A$1.2 billion in the year ended Aug. 31, from 1996-97
levels, the National Wine Centre, a government-funded marketing agency, said.

The export boom has prompted growers to almost double new plantings since 1995.
In the past year, the area of fruit-bearing vines has increased almost 13
percent to an estimated 106,000 hectares (262 acres), from 94,000 hectares, the
Australian Wine & Brandy Corp.'s Stanford said.

The trend may abate, though, as the average price for wine grapes continues to
decline. Prices will likely average about A$730 a ton, compared with A$803 a
ton last year and A$883 in 1999, Stanford said.

Southcorp, Foster's

That's good news for Australia's major winemakers, such as Southcorp Ltd. and
Foster's Brewing Group Ltd., which buy half their grape requirements from other
growers.

With only 10 percent of the national crop in the bin, growers will be hoping
for mild weather through May, when the vintage is expected to finish.

``Conditions in the next four to six weeks will be critical in determining
final outcomes for the vintage, particularly in quality terms,'' Stanford said.

Unusually hot weather during the past two months has seen crop estimates fall
below the 1.31 million tons forecast in November. Yields are now expected to
average close to the five- year average of about 12.2 tons a hectare (30 tons
an acres), Stanford said.

Still, that's 4.3 percent higher than last year's average yield of 11.7 tons a
hectare.

[J2jurado]

Heineken enters German market with jv

By Otti Thomas

AMSTERDAM, Feb 22 (Reuters) - Dutch brewer Heineken on Thursday announced its
first major move into Germany, Europe's largest beer market, banking on a
consolidation in the fragmented industry there.

Heineken said in a statement it had launched a joint venture with Bayerische
BrauHolding AG, a member of Schoerghuber Corporate Group.

Heineken will take a 49.9 percent stake in the new business while Bayerische
BrauHolding AG will hold the remaining 50.1 percent. No financial details of
the deal were disclosed.

"Currently the German beer market is fragmented with a large number of small
breweries. This situation will not continue in the long run," said Heineken
Chief Executive Karel Vuursteen.

Heineken currently exports its Heineken and Murphy brands to Germany, but owns
no brewers in the country. The company said the deal offered it "an inside
view" of the German beer market.

Shares in Heineken barely reacted to the news, trading down 0.9 percent at
59.75 euros at 1138 GMT in line with the broader stock market.

Market watchers said the deal was small, but strategically important.

"Through this joint venture Heineken gets a hold on the German market. In the
longer term they might take stakes in other breweries in Germany. Maybe then
they could improve the sale of their Heineken brand in Germany," said Peter
Bekius, portfolio manager at investment bank Kempen.

Rabobank analyst Anneke Groen noted there were more than a thousand small
breweries in Germany.

"I think it's important for Heineken that when the German market starts
consolidating, they have a strong position," she said though, though she warned
it could take years before the consolidation began.

EXPORT OF PAULANER WELCOMED

Heineken also said that the joint venture, named BrauHolding International AG,
would export Paulaner Weiss beer world-wide through Heineken's global network.

Analysts said Paulaner would be a welcome addition to Heineken's current beer
portfolio.

"Paulaner beer is well known in Germany. In the Netherlands it has the
potential to become successful," said Gerard Rijk, analyst at ING Barings.

The joint venture will own 50 percent of Paulaner Brauerei GmbH&Co KG with
sales of 2.8 million hectolitres. It will also hold 62.66 percent of Kulmbacher
Brauerei AG, which has annual sales of 1.9 million hectolitres, and 50 percent
of Inversiones y Rentas SA (IRSA), a joint venture itself which owns 61.58
percent of Chili's Compania Cervecerias Unidas SA.

"In relation to Heineken's size, this is a small step, especially if you look
at the amount of hectolitres. It will add about two million hectolitres to
Heineken's (annual) total of 80 million," said ING Barings' Rijk.

Belgium faces David-Goliath task on Interbrew

By Lisa Jucca

BRUSSELS, Feb 22 (Reuters) - Belgium is unlikely to succeed in its
ground-breaking challenge to a British merger ruling against beer giant
Interbrew, one of Belgium's largest firms, competition lawyers say.

In an exceptionally bold move, Belgium announced it would file a complaint with
the European Court of Justice against the UK antitrust body's decision to
overturn Interbrew's 2.3 billion pound ($3.2 billion) purchase of Britain's
Bass Brewers.

That ruling, announced on January 3, was a stinging blow to Belgium, where
Interbrew is seen as the national champion of Belgian beer abroad.

Belgium's chances of success are slim given that so far just one country --
France -- has managed to win a dispute against another EU country for a
violation of the bloc's founding treaty. And that was back in 1979.

Furthermore, the complaint is against the UK merger authority, which is
respected for its independence.

"The likelihood of the European Court of Justice ruling against the UK is
incredibly remote," said Kieran Desai, a partner at law firm Rowe and Maw in
Brussels.

According to the treaty of the European Union, which forms the legal basis for
cross-country regulations in the 15-nation bloc, one member state can take
another to court if it believes the treaty has been infringed. This principle
is enshrined in article 227 of the treaty.

A POLITICAL MOVE?

Interbrew, best known for its Stella Artois lager, had protested that the UK
imposed concessions which were disproportionate to the competition concerns.
The UK competition authority recommended Interbrew sell Bass Brewers in one
piece to one approved buyer.

"Belgium is alleging that the decision requiring Interbrew to sell off Bass is
inconsistent with the UK's obligation under the treaty," said Coudert Brother
competition lawyer Alastair Gorrie in London.

"It is alleging that the UK has gone beyond the measures strictly necessary to
safeguard or restore effective competition on the market concerned."

Mergers between companies with combined worldwide sales of over five billion
euros and EU turnover of 250 million euros each are normally examined by the
European Commission, the EU's antitrust watchdog.

But EU countries can ask for referral if they can prove that competition issues
involved in a specific merger are core to their domestic market only.

The Interbrew acquisition of Bass had raised antitrust concerns in Britain as
the merged entity would have a market share of 32 percent there.

By filing a complaint, the Belgian government is throwing its weight behind the
case.

Interbrew has appealed in Britain against the UK competition authority's
decision but is waiting for a response from the British High Court.

The Belgian government move could help the company gain time, lawyers say.

"It's a very bold move. But looking at the historic track record it has very
little chance of being successful in court," said a lawyer at a competition
firm in Brussels.

"But it helps to put some political pressure on the (UK) government to give
Interbrew more time find a purchaser for Bass."

If Interbrew's appeal failed, the firm could ask the UK court to suspend its
obligation to sell Bass Brewing pending the outcome of the European case.

On average, it takes 18 months for the European Court of Justice to issue a
ruling.

SAB and Castel in African drinks alliance

By Mike Elliott

LONDON, Feb 22 (Reuters) - South African Breweries Plc and Castel Group,
Africa's two biggest drinks firms, said on Thursday they had agreed a strategic
alliance to boost their positions in the continent's beverage market.

SAB said the deal, in which each company takes stakes in the other, was in line
with its strategy of growing globally and was not necessarily a precurser to
SAB taking over the family-owned Castel business -- or at least not yet.

"We see this is a step in its own right. (But) we do have a shareholders'
agreement with the Castel Group and should at any stage they decide to
sell....we would obviously be in a preferential position," SAB Corporate
Finance Director Malcolm Wyman told a conference call.

SAB will acquire a 20 percent stake in the beer division of Castel Group (CBB),
while CBB will take up a 38 percent stake in SABI Africa, a SAB unit, by way of
a nil premium share exchange.

The value of CBB's assets being transferred to SAB is about $64 million and
those of SABI Africa's assets being transferred to Castel is around $73
million.

"(The alliance) strengthens an existing relationship, whilst providing an
excellent opportunity for us to enter previously unexplored markets within the
African continent, which offer exciting growth potential," SAB Chief Executive
Graham Mackay said in a statement.

In London, SAB shares were down 11 pence or 2.1 percent at 515p.

The alliance was seen bringing together complementary market positions across
Africa -- excluding South Africa and Namibia -- with SABI Africa operations
mainly in southern and east Africa and those of CBB maily in west and central
Africa.

The two groups also agreed to invest in new African markets by way of 50-50
joint ventures.

"We are confident that our close relationship with SAB will result in faster
growth for both groups in Africa in their chosen beverage markets," Castel's
Executive Chairman Pierre Castel said in the statement.

The strategic alliance, which becomes effective April 1, was initially expected
to be broadly earnings neutral.

AFRICAN SEEN RIPE FOR GROWTH

As well as SAB and Castel, there are two other international players in the
African market, Diageo Plc's Guinness and Dutch brewer Heineken.

"Africa is a continent with relatively low consumption per capita and we
believe that there's potential for increasing consumption over time," Wyman
told reporters.

Wyman said the deal would enable it to spread investment risk across Africa and
make more efficient use of resources.

SBI Africa -- the holding company for SAB's African beer, sorghum and
carbonated soft drinks outside South Africa -- had total beer production of
13.9 million hectolitres for the year to March 31, 2000, and soft drinks output
of 2.7 million.

Castel had total beer production of 9.1 million hectolitres in 2000 and soft
drink and mineral water output of 7.3 million.

Asked about SAB's aim to be involved in the ongoing global consolidation
outside of Africa, Wyman said the group would be looking at all opportunities
that present themselves.

SAB has been touted as a possible buyer of Belgium beer giant Interbrew's Bass
Brewers business, which the UK authorities has ruled it must sell.

"We have said that when it comes available we will look at the opportunity.
However, we will only advance that initial interest if we can do so on a basis
which can add value to our shareholder," Wyman told the conference call.

SAB Swaps Share in Africa Business for 20% of Castel Group

London, Feb. 22 (Bloomberg) -- South African Breweries Plc, the world's No. 5
brewer, said it plans to swap 38 percent of its African unit for 20 percent of
the Castel Group's Beer Division and set up a joint venture to invest in new
African markets. The alliance aims to make better use of management and
equipment and save costs in the purchase of raw materials, packaging and plant,
said Malcolm Wyman, SAB's corporate finance director. SAB said the alliance is
unlikely to boost earnings.

South African Breweries has operations in southern and east Africa, while
Castel operates in west and central Africa. The companies will not seek to sell
their brands in each other's territories. There are only two countries, Angola
and Mozambique, in which both operate.

``We want to continue to participate in global consolidation of the industry,''
Wyman said.

The alliance is specific to Africa, though it excludes South Africa and
Namibia.

The mew joint venture between the two companies may invest in Nigeria,
potentially the continent's biggest market with about 120 million people.
``Certainly it's one we're both looking at,'' said Wyman.

The maker of Castle Lager is reducing its exposure in South Africa, where a
decline in beer consumption is a drag on sales. Analysts have tipped the
brewer, along with Carlsberg A/S and Heineken NV, as a potential suitor for
Bass Plc's brewing unit after the U.K. Competition Commission this month
ordered Interbrew Plc to dispose of it.

``Bass is mired in the judicial review process, though when it becomes
available, we will look at it,'' said Wyman. He declined to comment on whether
SAB was in talks with other European brewers.

South African Breweries shed 70 cents, or 1.2 percent, to 57.7 rand.

Diageo profits show spirit, burgers off the menu

By Jean Yoon

LONDON, Feb 22 (Reuters) - Diageo Plc , the world's largest drinks group, said
on Thursday its top spirits like Johnnie Walker scotch lifted half-year profits
by 9.4 percent, but warned trading for its Burger King unit was challenging.

The London-based group, which owns Smirnoff vodka, Baileys liqueur and Guinness
beer, said it was confident of achieving overall growth targets for the year,
but confirmed the floating of the underperforming fast-food burger chain may be
delayed.

Diageo shares, which have outperformed the UK market by 23 percent in the last
six months but moved broadly in line with their peers, reacted negatively, down
1.2 percent at 675 pence in afternoon trade.

"This is a disappointment. The number we focus on is the top line growth and
the sales rose just four percent. There is nothing to get excited about," said
Iain Brown, UK fund manager at Morley Fund Management, a Diageo shareholder.

"It doesn't change our view that this is a low growth business, where returns
on capital are under pressure in the long term."

Pre-tax profits before goodwill amortisation and exceptional items to December
31 rose to 1.189 billion pounds ($1.72 billion) on sales up four percent to
6.84 billion. The market had expected a profit of 1.16-1.20 billion pounds.

The group proposed a dividend of 8.9 pence, up six percent.

PREMIUM DRINKS

Diageo said its strong performance was led by robust sales growth of its top
spirits but trading at the world's second-largest burger chain, Burger King,
faced a more difficult environment, particularly in the United States.

"We continue to invest to drive growth of our main profit engine. The marketing
spend on premium drinks was up nine percent," Finance Director Nick Rose told a
conference call.

Its UDV spirits unit saw operating profit up 14 percent, but analysts said
three percent organic volume growth for premium drinks was discouraging.

Chief Executive Paul Walsh told reporters the UK, the United States, Ireland
and Spain were Diageo's key markets and the group plans to tap new markets with
its global premium brands.

Operating profit for Guinness beer rose 13 percent and for Pillsbury food 11
percent, but Burger King, which contributes seven to eight percent of group
operating profit, surprised the market by falling seven percent.

"They (Burger King) are slightly lower than expected but there is compensation
elsewhere in the business," said analyst Philip Morrisey at house broker UBS
Warburg.

BURGER KING DRAGS

"We are determined to improve the operating performance of Burger King to
ensure that the proposed full separation of Burger King from Diageo realises
value for shareholders," Walsh said in a statement.

"The recent appointment of John Dasburg to the role of Burger King's chief
executive officer is an important step in this process."

On Tuesday, Burger King hired Dasburg, chief executive of Northwest Airlines
Corp., to head the fast-food chain and oversee its planned initial public
offering.

"We are not totally against the possibility of an IPO this year, but for a
right market and a price, there is a reasonable possibility of it happening
early next year," Rose said.

An IPO of the first 20 percent of Burger King had been expected to take place
in the second half of 2001, with the remainder of the shares being placed by
the first quarter of 2003, valuing the group at around 2.5 billion pounds.

"Trading at Burger King remains challenging and in January comparable
restaurant sales were down approximately three percent, however February is
slightly better...the full year reported operating profit is likely to be down
year on year," Walsh said.

Diageo has had a busy time since Walsh became chief executive designate at the
start of 2000. In June, it announced its intention to float Burger King, then

in July it agreed to sell off a majority of its Pillsbury U.S. food unit and

plans to integrate its spirits unit UDV with Guinness.

Walsh took over as chief executive in September and by December had won
Seagram's $8.15 billion drinks auction with partner Pernod Ricard. They plan to
split the Chivas Regal and Captain Morgan portfolio between them.

"I am confident we will see steady improvement in Burger King but it is a very
competitive market," Walsh told Reuters Television.

Analysts said Burger King sales have lagged those of top competitors McDonalds
Corp. and Wendy's International Inc., one reason the company has had to delay
its IPO.

"I think clearly this business is going to take some turning round... It is
clearly underperforming," said analyst Nigel Popham at Teather and Greenwood.
"There is going to be a two year period of hard investment and hard work to
turn it around."

Diageo Says First-Half Profit Rose 11% on Liquor-Brand Gains

London, Feb. 22 (Bloomberg) -- Diageo Plc, the largest liquor company, said
first-half profit rose 11 percent, boosted by brands such as Smirnoff vodka and
Johnnie Walker Scotch whisky.

Net income in the six months to Dec. 31 rose to 850 million pounds ($1.2
billion), or 25.1 pence a share, from 766 million, or 22.6p a year earlier.
Sales of wine and spirits rose 6 percent.

Diageo is shedding the Pillsbury food unit and plans to hold an initial public
share sale for its Burger King chain as the company focuses on building more
profitable liquor operations. Diageo agreed in December to buy Seagram Co. with
France's Pernod Ricard SA to gain top brands such as Crown Royal whisky.

``The global priority brands, which were the main driver of growth in the first
half, have continued to grow in line with our expectations'' Chief Executive
Paul Walsh said in a faxed statement.

Sales in Burger King outlets open longer than a year slipped 3 percent in
January. Earlier this week, Diageo appointed John Dasburg, chief executive of
Northwest Airlines Corp., to head Burger King, the No. 2 hamburger chain. Walsh
said the planned initial public offering was likely to be delayed until next
year as the company focuses on improving sales.

Diageo will pay a first half dividend of 8.9 pence a share compared with 8.4
pence a year earlier.

Montana Group Wants Market Panel to Investigate Lion Purchases

Wellington, Feb. 22 (Bloomberg) -- Montana Group N.Z. Ltd. wants the nation's

Market Surveillance Panel to investigate whether Lion Nathan breached stock
exchange rules when it recently bought a 51 percent stake.

The panel is independent of the stock exchange, and is responsible for
monitoring whether companies obey listing rules.

Earlier this month, Lion moved to 51 percent of the nation's largest wine
market from 28 percent, outbidding Allied Domecq Plc. The British company
complained that Lion bought shares from institutions before it was entitled to.

Under exchange rules, Allied filed a complaint with Montana. Montana's
independent directors obtained legal advice, and agree that Lion may have
breached a listing rule, they said in a statement.

Montana ``considers the issue should be determined by a duly constituted body
under the stock exchange regulatory regime'' and requested the panel form a
committee ``to conduct an investigation into the dealings between Lion Nathan
and other Montana shareholders'' in the period before Feb. 9.

``We have consistently maintained that we have done everything in accordance
with the rules,'' said Lion spokesman Warwick Bryan. No panel officials were
available to comment.

Australian Cattle Producers Calculating Cow Burps

Emerald, Queensland, Feb. 22 (HeiferFax) -- Australian cattle producers are
being given ``cow burp calculators'' so they can help find out how much
greenhouse gas is being emitted by the world's biggest beef exporter.

Central Queensland University is making the booklets available so ranchers can
make their own methane gas calculations and get a better understanding of
global warming. Cattle and sheep produce methane during food digestion.

``Cattle release 90 percent of their methane by burping,'' said John Rolfe,
researcher with Central Queensland University at Emerald, who's leading the
study on greenhouse gases emitted by cattle in the region. ``It's surprising
just how much methane cattle can generate ... the result is an increase in the
greenhouse gases in the atmosphere, leading to global warming.''

The calculators are part of Australian government's plan to cut greenhouse
gases exuded by the country's A$14 billion ($7.3 billion) livestock industry by
more than 100,000 tons a year. Australia, the driest inhabited continent on
earth, could become even drier as the world heats up, scientists say.

To help make sure that doesn't happen, the government has committed almost A$1
billion over five years to fund initiatives aimed at boosting renewable energy
and energy efficiency.

Agriculture -- estimated by the government's commodity forecaster, Abare, to
contribute A$26.4 billion to export earnings in the year ending June 30 --
currently accounts for a third of Australia's greenhouse emissions, Rolfe said.

Methane Debate

The producer-funded group, Meat & Livestock Australia, which is funding the
project, aims to involve producers in the debate over opportunities to reduce
methane emissions from cattle. Guides outlining emission reduction strategies
have been published and information seminars are planned for the coming months.

So far, strategies such as culling poor-performing females and improving
pastures are working, said Peter Loneragan, manager of MLA's Northern Beef
Program.

``Since 1990, the beef industry has reduced greenhouse gas emissions by 1
percent,'' Loneragan said. The same time, Australia's cattle numbers have
increased by about 8 percent to 26.9 million head.

[J2jurado]

SAB Swaps Share in Africa Business for 20% of Castel

London, Feb. 22 (Bloomberg) -- South African Breweries Plc, the world's No. 5

brewer, said it plans to swap 38 percent of its African unit for 20 percent of
the Castel Group's Beer Division and set up a joint venture to invest in new
African markets.

The alliance aims to make better use of management and equipment and save costs
in the purchase of raw materials, packaging and plant, said Malcolm Wyman,
SAB's corporate finance director. SAB said the alliance is unlikely to boost

earnings while the share swap involves assets totaling $137 million.

South African Breweries has operations in southern and east Africa, while
Castel operates in west and central Africa. The companies will not seek to sell
their brands in each other's territories. There are only two countries, Angola
and Mozambique, in which both operate.

``We want to continue to participate in global consolidation of the industry,''
Wyman said.

The alliance is specific to Africa, though it excludes South Africa and
Namibia.

The new joint venture between the two companies may invest in Nigeria,

potentially the continent's biggest market with about 120 million people.
``Certainly it's one we're both looking at,'' said Wyman.

``The market was a little bit disappointed, it was looking for something
bigger,'' said Ilan Stermer, an analyst at Barnard Jacobs Mellet. ``Having said
that, it's not a bad deal.'' It gives the company access to Francophone Africa
and leaving South African Breweries in prime position if the Castel family
decides to sell its beer interests, he added.

The maker of Castle Lager is reducing its exposure in South Africa, where a

decline in beer consumption is a drag on sales. Analysts have tipped SAB, along

with Carlsberg A/S and Heineken NV, as a potential suitor for Bass Plc's
brewing unit after the U.K. Competition Commission this month ordered Interbrew
Plc to dispose of it.

``Bass is mired in the judicial review process, though when it becomes
available, we will look at it,'' said Wyman. He declined to comment on whether
SAB was in talks with other European brewers.

South African Breweries shed 70 cents, or 1.2 percent, to 57.7 rand.

Egypt's ABC in advanced talks for Gouna

By Rachel Noeman

CAIRO, Feb 22 (Reuters) - Egyptian drinks firm Al Ahram Beverages Company (ABC)
is in advanced talks to buy competitor Gouna Beverages Group, which has a 15
percent share of the alcoholic beverages market, ABC said on Thursday.

"We are seriously looking at this acquisition. It makes a lot of sense to us
and I am hopeful that we can shortly announce something to the market," Chief
Executive Ahmed Zayat told Reuters in an interview.

Zayat said that if the deal went through it would be "phenomenal" as it would
cement Al Ahram's dominance in Egypt, as well as eliminating a competitor which
currently has a 15 percent market share in the alcohol business.

"Should we be lucky enough to acquire it, the two businesses would remain as
two separate entities competing against each other," he said.

ABC is one of Egypt's most dynamic private-sector companies and one of the few
local firms to have been privatised 100 percent. It posted an 11.7 percent rise
in net profits for the first six months of calendar 2000 to 44.52 million
pounds ($11.47 million) on sales of 162.02 million.

SYNERGIES, ECONOMIES OF SCALE

One of the big advantages of the potential acquisition would be the synergies
and economies of scale that would significantly enhance Gouna's margins, Zayat
said.

Currently Gouna is not making as much as it should because it has to discount
its prices significantly, Zayat said, and their costs are significantly higher
than ABC's.

Zayat said that if the acquisition plan were to succeed ABC would grow the
company and even introduce new brands within Gouna. "It makes a lot of sense
for us to acquire it. We have tonnes of cash in ABC, close to 200 million
pounds and very little debt," he said.

Launched in April 1999, the Gouna Beverage Group makes Obelisque wines, Sakara

beer and produces Lowenbrau beer locally.

Tourist group Orascom Projects for Touristic Development (OPTD) owns 35 percent
of the Gouna Beverage Group. Egypt's Sawiris family, who run the Orascom group
of companies, and Lebanon's Debbane family are among the other shareholders.

OPTD figures show the book value of OPTD's 35 percent stake in Gouna as 95
million pounds. Chairman Sameh Sawiris said on Monday OPTD's stake could be
worth up to 120 million pounds.

El Gouna posted roughly seven million pounds in profit last year, OPTD said.

ABC's share price was untraded in Egypt on Thursday after closing on Wednesday
at 49.00 pounds. The GDR was down $0.07 , or 0.6 percent, at $12.65. OPTD's
share price ended up 0.44 pounds at 9.38 pounds in very thin volume of just
2,661 shares.

1-3.88 Egyptian pounds

Sapporo Breweries 2000 Net Income Falls 70%

Tokyo, Feb. 23 (Bloomberg) -- Sapporo Breweries Ltd., Japan's third-largest
brewer, said annual profit fell 70 percent after sales of its main ``Black
Label'' beer declined and it took charges linked to plant closures.

Sapporo, which also makes ``Brau'' and ``Reisei Karakuchi'' low-malt beers,
said group net income in the year ended Dec. 31 fell to 1.3 billion yen ($11
million), or 3.85 yen a share, from 4.4 billion yen, or 13.09 yen a share, the
previous year. Sales fell 1.5 percent to 564 billion yen.

Last May's release of low-malt Reisei Karakuchi failed to offset a decline in
Black Label sales. All of Japan's major breweries have released low-malts at
prices about a third less than regular beer to counter a shrinking market.

``Consumer spending was as bad as we had expected last year,'' said Toshiaki
Oka, a director in Sapporo's marketing division. ``Instead of eating out,
people increasingly spend money on other things like cellular phones.''

Shrinking Market

Still, net income was 30 percent above Sapporo's November forecast. The company
said promotional costs were less than expected.

The company was also hurt by its restaurant subsidiary, Sapporo Lion Ltd. The
unit lost 619 million yen on sales of 28.6 billion yen. It lost 760 million yen
a year earlier.

``The company will be continuously dragged down by the restaurant unit, unless
it trims the business,'' said Hideki Morioka, an analyst at Kokusai Securities
Co. who rates Sapporo ``hold.''

Japanese brewers are suffering from a decade-long economic slump that's cut
into corporate expense accounts and forced consumers to cut back on eating out.
Meanwhile, more people, especially the young, have turned to canned cocktails
and other non-beers.

Brewers last year saw a 0.7 percent decline in shipments of regular and
low-malt beer, a second annual decline.

Sapporo has cut capacity to cope with the market shrinkage, taking 10.2 billion
yen in one-time charges to close a plant in Aichi prefecture, central Japan,
and one in Kyushu, southern Japan.

For the current year, Sapporo said it expects group net income to rise fourfold
to 5.3 billion yen on sales of 576 billion yen, up 2.1 percent.

The earnings figures were released after the close of trading today. Shares
were unchanged at 350 yen. They've gained 6.1 percent since Jan. 1

Kirin, Suntory, Asahi beer sales up in 2000, Sapporo fizzles

TOKYO, Feb. 23 (Kyodo) - Three of Japan's four major beer brewers boosted sales
last year over 1999, while Sapporo Breweries Ltd. suffered a 1.5% fall,
according to their consolidated business results released by Friday.

In the business year through Dec. 31, Kirin Breweries Co. and Suntory Ltd.
hiked sales by 8.9% and 8.4%, respectively, thanks to strong demand for their
low-malt liquor known as ''happoshu,'' while Asahi Breweries Ltd. managed to
post a 0.2% rise.

Sapporo, meanwhile, witnessed its fourth consecutive yearly sales fall.

On the pretax profit front, Kirin, Suntory and Sapporo logged increases, while
Asahi was hit by an 82.6% plunge due mainly to huge capital losses on
securities holdings it unloaded during the period.

Kirin and Suntory, Japan's biggest whiskey distiller, posted sizable net
profits, but Asahi sank into the red for the first time since its founding in
1949.

Sapporo saw its net profit dive 70.6%.

The following are 2000 consolidated results for the four. Figures are in
billions of yen, with year-on-year percentage changes in parentheses. Minus
signs denote losses, year-on-year percentage falls or incomparability with
other data.

Sales Pretax Net

Profit Profit

Kirin 1,580.8 93.0 32.9

(8.9) (16.6) (-1.0)

Suntory 1,400.4 73.6 13.9

(8.4) (56.3) (53.5)

Asahi 1,399.1 12.8 -15.7

(0.2) (-82.6

Sapporo 564.0 8.5 1.3

(-1.5) (6.5) (-70.6)

Chile Quinenco rejects Heineken joint venture

SANTIAGO, Feb 23 (Reuters) - A shareholder of Chile's largest brewer, CCU <<A
HREF="aol://4785:CU">CU.N</A>> <CCU.SN>, said on Friday it opposes a deal in
which Dutch brewer Heineken <HEIN.AS> would indirectly take up a stake in CCU,
saying it posed a conflict of interests.

"The fact that Heineken would enter CCU directly or indirectly represents a
serious conflict of interests," investment company Quinenco <<A
HREF="aol://4785:LQ">LQ.N</A>> <QNN.SN>, a shareholder of CCU, said in a
statement. "Heineken is an important player in the Chilean and Argentine beer
and soft drink markets."

"Consequently, its entrance into CCU is contrary to the most basic legal and
economic principles in our country," it added.

Heineken already markets its brand in Chile through Cerveceria Chile, which is
CCU's rival.

On Thursday, Heineken said it will take a 49.9 percent stake in a joint venture
named BrauHolding International AG, and Bayerische BrauHolding AG, a member of
Schoerghuber Corporate Group <PTHG.MU>, will hold the remaining 50.1 percent.

The new business would own 50 percent of Inversiones y Rentas SA (IRSA), a
joint venture itself which owns 61.58 percent of Cia. Cervecerias Unidas (CCU).

"Quinenco is studying the issue in order to see how to protect the rights of
our shareholders and CCU's shareholders," the company said.

Grown-Up Drinks for Tender Taste Buds
Smirnoff's parent places a big bet on its fruity beer alternative

By Gerry Khermouch in New York Feb 22, 2001

When Smirnoff Ice first showed up in nightclubs in Austin, Tex., last year, it
looked like just another entry in the ever-changing group of fruity,
low-alcohol drinks aimed at young adults with a sweet tooth. But backed by a
local TV-ad blitz and heavy bar promotions, the clear, citrusy beverage blew
off the shelves during the field test, selling at volumes approaching those of
import-beer kings Corona and Heineken. ``It's been so huge you could write a
book on it,'' exults Howard Wilson, field sales manager at Austin wholesaler
Capitol Beverage Corp.
That's welcome news for Smirnoff's marketer, London-based Diageo PLC. A
succession of turnaround efforts have barely moved the needle on sales of
venerable Smirnoff Vodka. In 1999, shipments in the U.S. edged up a scant 1%,
according to Impact Databank. Meanwhile, rival upstarts like Skyy, Absolut, and
Finlandia have scored with younger consumers, achieving consistent double-digit
sales gains.
Smirnoff Ice could be a potent weapon to change all that: Its sweet taste
and boisterous, beer-style ads may be just the thing to attract consumers who
grew up on fruit drinks and soda pops and are now reaching legal drinking age.
These young adults ``want the panache of drinking alcohol but are not ready to
go out and have an Absolut or Chivas Regal on the rocks,'' says Stephen Fisher,
president of Seagram Beverage Co.
PERCEPTIONS. To reach them, beverage makers have been tossing out an array of
new brands with quirky monikers like Mike's Hard Lemonade, Rick's Spiked
Lemonade, and Hard E (for ``energy''), along with packaging covered with
graffiti-style lettering and colorful characters. Most, including Ice, employ
the same malt base as beer, but go out of their way to foster a perception that
they are different.
So far, none has found a durable place in the mass market, but then, none
has enjoyed a megabudget launch since Coors Brewing Co.'s big-ticket Zima
kickoff failed to meet expectations nearly a decade ago. Like Coors, Diageo is
thinking big: It's bankrolling Ice's rollout with $50 million in marketing
support just in the first six months of this year. TV ads from agency J. Walter
Thompson show a guy spraying his fishing buddy with honey to distract a bear
that's ambled into their campsite. That way, he gets to keep a cooler full of
Ice for himself and the two young women the guys have met in the woods.
``Smooth move,'' the tag line approves.
The ad's tone may be a far cry from the urbane sophistication often used in
booze marketing, but these aren't urbane consumers being targeted. Indeed,
Diageo chose to market the new brand through its beer unit, Guinness Bass
Import, not its spirits unit. Still, Ice-- which contains no vodka--is counting
on the recognition and heritage of the 150-year-old Smirnoff trademark to set
it apart from rivals. And there's already buzz about ready-to-drink,
low-alcohol versions of other Diageo brands such as Malibu rum and Jose Cuervo
tequila. ``We've made no secret that we intend to have further ready-to-drink
beverages,'' says Guinness Bass president Tim Kelly.
In some ways it's a risky game. Take the TV ads. Having a low-alcohol
version of Smirnoff may circumvent restrictions on liquor commercials, though
Kelly denies that's the strategy. Still, plans for an introductory blowout on
the Super Bowl ran aground when broadcaster CBS turned down Diageo's bid for a
national buy. The marketer was able to do an end run via local buys in 24
markets, but obtaining national airtime remains tough. And while Diageo insists
it's being careful to target its ads to adult viewers--and it's airing a
healthy dollop of responsible-drinking messages to boot--some critics feel
so-called alcopops inherently are appealing to underage drinkers.
Retailers, though, have warmed to Ice, and some say it's already giving a
lift to the vodka brand. In the Texas test, ``Ice has increased Smirnoff Vodka
sales,'' reports Chris Cage, assistant vice-president of bar operations at
Dallas-based restaurant chain Dave & Buster's Inc. If the pattern continues,
Ice could become a win-win deal for Diageo.

Heineken Buys Into German Venture

23 February MUNICH, Germany (AP) - Dutch brewer Heineken NV took its first step
into the German beer market Thursday, announcing plans to buy a 49.9 percent
stake in a venture with Bayerische BrauHolding AG, maker of Munich's trademark
Paulaner Weiss beer.

Heineken, the world's second-largest brewer after Anheuser-Busch Co., said the
deal gives it another powerful brand that it can market through its vast global
sales and distribution channels.

Paulaner Weiss beer sold around 26 million gallons in 2000. Heineken's
international specialty beers include Amstel and Murphy's Stout.

At the same time, the deal gives Heineken better channels to market its
flagship beer in Germany, where it has a limited presence.

Heineken's brands are sold in 170 countries, and the company controls about 13
percent of the European beer market. But it has been reluctant to venture into
Germany, where the beer market is dominated by small regional players.

Financial details of the deal were not immediately released. The partnership
must still win approval from regulators.

Bayerische BrauHolding is a unit of Schoerghuber Corporate Group, which will
hold 50.1 percent in the venture, to be named BrauHolding International AG.

The international unit will own 50 percent of Paulaner Brauerei GmbH and Co. KG
- Bayerische BrauHolding retains the other half - as well as another German
brewer and a stake in Chilean brewer Compania Cervecerias Unidas SA.

Scottish & Newcastle Names McHoul as Finance Director

Edinburgh, Feb. 22 (Bloomberg) -- Scottish & Newcastle Plc, the largest U.K.
brewer, said it appointed Ian McHoul as finance director, replacing Derek
Wilkinson who will retire in July.

McHoul, 41, joined the company in 1998 as finance director of the Scottish
Courage division. He will take up his position in July after Scottish &
Newcastle reports full-year earnings. Wilkinson, 58, has been with the company
for 26 years.

``Derek has done an outstanding job for Scottish & Newcastle over many years,
not least in the last 12 months as we have transformed S&N into one of Europe's
leading beer companies,'' Chairman Brian Stewart said in a statement
distributed by the Regulatory News Service.

The maker of Newcastle Brown Ale is seeking buyers for 740 of its 2,373 managed
pubs and will rent out an additional 180 as the company focuses expansion on
the beer division.

The shares slipped 1 pence, or 0.2 percent, to 513p. The stock has risen 19

percent over the past year.

Inside Information on the California Winegrape Harvest

CALISTOGA, Calif.--(BUSINESS WIRE)--Feb. 23, 2001--This year's GRAPE HARVEST
INTELLIGENCE report is a 75-page Synopsis of The Year 2000 Grape Crush With
Summary Comments and Analysis. It contains scores of charts and tables
comparing yields and prices for the major varietal of each winegrape-growing
district and region in California. The report is expanded(a) from presentations
at this year's Grape Crush Forum in Santa Rosa and Lodi, organized by Rich
Cartiere's Wine Market Report and Wine Market NOW! newsletter and seminars.

(a) additional commentary

The Grape Crush of 2000 Statistical Synopsis is $1900 Each, plus Sales Tax 7.5%
and Shipping of $5 Each.

Effective Response to College Drinking Exists

ST. PAUL, Minn., Feb. 23 /PRNewswire/ -- Aggressive enforcement of underage
drinking laws around several colleges in St. Paul has worked, according to
school officials, neighbors, public health staff and St. Paul police. A
coordinated effort to clamp down last fall on public drinking at so-called
"party houses" around campuses has resulted in significantly more citations by
police and less problems reported to campus officials. According to St. Paul
police, during two months of aggressive, campus neighborhood enforcement
throughout the city last fall, 132 underage drinkers were ticketed and four
adults were charged with providing alcohol to minors. That compared with 56
citations and no adults charged during the same period in 1999.

Funded by $8,000 in grant money from the MN Department of Public Safety and the
US Dept. of Justice, enhanced enforcement has been the centerpiece of the Zero
Adult Providers (ZAP) project. ZAP is also involved in efforts focusing on
similar problems around the University of Minnesota, where a college freshman
died last weekend after drinking preceded a fatal head injury from a fall. ZAP
was the impetus behind a new law enacted in 2000 that allows those harmed by
underage drinking to sue adults who provide the alcohol consumed to those
illegal drinkers. The civil cause of action law came on the heels of a new law
passed in 1999 that makes it a felony to provide alcohol to those under 21 when
serious injury or death result. Current police efforts are focusing on finding
the adult who sold or provided the alcohol consumed by the student who died and
the students with whom he was drinking.

Public health nurse and educator Kris Wertz, who has worked with ZAP since it
began in 1999, said the focus of aggressive campus area enforcement is getting
at the adult provider. "Adults who illegally provide or sell alcohol to those
under 21 are at the heart of the underage drinking problem," Wertz said. "We
are trying to change the community attitude that allow this problem to continue
and that get in the way of necessary enforcement," she added. "Our message is,
'Condoning alcohol is evil. And selling or giving alcohol to kids is wrong and
will get you in a world of trouble.'"

Enforcement has made a difference, according to University of St. Thomas (UST)
Dean of Student Life Alan Sickbert, who is seeing fewer problems at the
school's St. Paul campus. "In the vast majority, over 80%, of disciplinary
problems on and off campus, alcohol is a factor," said Sickbert. "Following
the police response and presence last fall, there was a significant decline in
alcohol violations in our neighborhood," he added. UST worked with local
health officials, police and neighbors to educate its students and neighbors
about the existing laws and the response of police officers to calls about
party houses and other public drinking.

Despite its success, the grant for police overtime to implement the project
runs out this spring. That leaves the continuation of aggressive enforcement
in the hands of existing police budgets, and ultimately, the elected
officeholders who approve those budgets. Wertz noted that, "If communities,
including parents of college students, want to prevent tragedies like the
Thielens', they must call the police when they suspect underage drinking, and
they must let their elected officials know they expect the police to respond
immediately and enforce the law." She commended the police efforts to find the
adult who sold or gave the alcohol to those drinking in the dorm with Jonathan
Thielen before he died.

Sen. John Marty (DFL-Roseville) has introduced a bill (SF 296) that could
increase the funding for such prevention and enforcement efforts by raising the
excise tax on alcohol. The money raised, roughly five cents on a glass of
beer, would be directed to law enforcement, prevention and treatment of alcohol
abuse. The bill recently passed the Senate Crime Prevention Committee over
protests from bar owners and the liquor industry. Committee members approved
the bill's use of an increased alcohol tax to fund increased enforcement,
prevention and treatment, but removed the specific tax amount, preferring to
let the Senate Tax Committee determine how much the tax should be raised.

For further information about ZAP and issues raised above (in addition to Kris,
Jim and Alan):
Jeff Nachbar 612-760-7165 MN Join Together Coalition

No consensus yet on alcohol ban in railway stations

TOKYO, Feb. 24 (Kyodo) - Almost a month has gone by since two men died while
trying save a drunken man from the rail pit at a train station in Tokyo but
railway companies in Japan have yet to come to a consensus on whether to ban
the sale of alcohol on train platforms.

East Japan Railway, which operates the Yamanote line where the tragic act of
heroism took place Jan. 26, has taken the lead in declaring ''self-restraint''
and pulled alcoholic beverages from the kiosks in some of its train stations.

However, not all railway operators have followed East Japan's lead.

Many kiosk operators are reluctant to remove alcoholic beverages from their
shelves, some arguing that clients might complain.

For their part, railway companies appear reluctant to declare an outright ban,
as the sale of liquor represents a sizable revenue to affiliate companies that
operate the kiosks at train stations.

''The impact on income will be big, given the downturn in the economy. I
suppose we will have to make up for the loss by opening new stores,'' said an
operator from East Japan Kiosk Co. after JR East, as East Japan Railway is
popularly known, put out the no-alcohol policy.

Beginning Feb. 17, liquor is no longer sold on the platforms of 24 stations
inside Tokyo on the Yamanote and two other JR East commuter lines.

While the ban is limited to 67 kiosks at JR stations for local and express
trains, revenues from liquor sales -- mostly beer and sake -- at these stations
come to 270 million yen a year.

But the large numbers of drunken passengers who have tumbled into rail pits --
like the 37-year-old man who fell from the platform of JR Okubo station on the
Yamanote line last month -- have kept the issue alive.

The transport ministry has also joined in the fray.

However, instead of shaping public policy, the ministry has merely told the
nation's railway companies to consider whether or not to ban alcohol sales at
train stations, which is seen as compounding accidents involving drunken
passengers.

According to the transport ministry, 30 people were killed or injured in the
first half of fiscal year 2000 (April to September 2000) after accidentally
falling into the rail tracks. The number, however, does not include those who
fell into the railway pits but were not injured.

''If those numbers were included, the annual figure would be around 700, 50% to
70% of them involving drunks,'' a transport ministry official said.

As liquor sales directly affect the revenue of affiliated companies, in the
Tokyo area, the Eidan subway system has been the only train operator to follow
JR East's example.

The private railway operator Tobu, which operates 34 platform kiosks at train
stations in Tokyo and four nearby prefectures -- Tochigi, Saitama, Gunma and
Chiba -- is taking a wait-and-see attitude. ''We are watching what others are
doing,'' one Tobu Railway executive says.

As for regional railway companies operating away from the big population
centers, the management appears more reluctant to ban alcohol sales, on grounds
that their train stations serve both commuter and long-distance trains and
liquor sale is viewed as a ''service'' for long-distance travelers.

At Central Japan Railway, or JR Tokai, the management limits its efforts to
reduce alcohol-related incidents at train stations by telling kiosk vendors not
to sell liquor to passengers who ''appear to be completely drunk.''

Hokkaido Railway and Kyushu Railway -- the two JR group companies which rely
heavily on long-distance railway travel, are completely reluctant to end liquor
sales at their train stations.

The two remaining JR group companies -- West Japan Railway and Shikoku Railway
-- are riding on the fence on the alcohol issue.

''We are still asking around what we should do,'' one West Japan Railway
executive says.

The response from Shikoku Railway is that it needs further discussion on the
matter within the company. ''This is something involving our company's
operation,'' one Shikoku Railway executive said.

Ryozo Kawashima, a commentator who specializes in railway issues, is
philosophical about the issue of selling alcohol at train stations.

He says while he agrees that liquor sales should be banned at commuter train
stations, it is difficult to set clear-cut standards. ''Ultimately, I think the
passengers should decide for themselves,'' he said.

Confederate flags and Busch beer - racing faithful honor a fallen king

By ALLEN G. BREED, Feb 23, 2001

ROCKINGHAM, N.C. (AP) - In a way, the stack of Busch Light beer cases outside
Doug and Glenda Hall's camper serves as a tribute to Dale Earnhardt.

You see, through most of their 16 years of marriage, Doug was a Miller Lite
man. But when Anheuser-Busch Co. became a sponsor of the racing team Earnhardt
owned, the couple just had to switch.

That was the kind of appeal Earnhardt had.

``He was my man,'' Glenda Hall said over the generator growl as she stood
shivering on a patch of faux-grass carpet in the campgrounds across U.S. 1 from
the North Carolina Speedway. ``He's the only man my husband's ever let me have
in my living room, bedroom and kitchen.''

The couple have stockpiled eight cases of their favorite beer for this weekend.
They will need it as they prepare for Sunday's Dura Lube 400, their first
NASCAR race in years without ``their man.''

``I think that any Earnhardt fan that doesn't come, they're going to look like
a bunch of cop-outs,'' said Mrs. Hall, a No. 3 earring flashing from each lobe.
``We should be here to show our remorse and all to his family and to the legend
of the sport that's fallen.''

And so, less than a week after his death in a crash at Daytona, legions of fans
in pain are making the pilgrimage to ``The Rock,'' a track sunken in the pines
of North Carolina's Sand Hills like a crippled flying saucer.

Across the road is a pup-tent bivouac festooned with Confederate flags and
Earnhardt banners. Outside the main gate, a granite boulder inscribed with the
names of Earnhardt and other Winston Cup champions is encircled by ''3''-shaped
flower arrangements, winged Teddy bears, black balloons and roses - both real
and chocolate.

Mary Kay Rowell wiped away tears as she walked from the makeshift memorial.

``Oh, I haven't cried in 10 years, and I cried two full days after this
happened,'' the Dillon, S.C., woman said. ``He was my boyfriend's driver - and
he was also my driver, too.''

How do people decide whom to make ``their driver''? For a primer, stop by the
corner table at downtown Rockingham's Holiday Restaurant, where fans come to
wash down pork barbecue with pitchers of sweet iced tea.

Bill McAnulty raced the ``outlaw'' dirt tracks in the 1950s and '60s. His
favorite driver was erstwhile moonshine runner Junior Johnson, until Johnson
made a fateful decision - he switched to Fords.

``I couldn't pull for a Ford,'' McAnulty said, shaking his head in mock
disgust. ``I was raised in a Chevrolet family and I drove Chevrolets. I'm
driving Nissans now, but when it comes to racing, it's got to be a Chevrolet.''

But why?

``Why are you generally a Republican or a Democrat?'' he asked. ``Because you
were born into it.''

McAnulty found a new hero in Earnhardt. And after a lot of soul-searching, he
has decided to pull for Dale Jr.

``He's got the right car, he's got the right name and he's driving essentially
his dad's equipment. And he's a pretty doggone good race driver,'' McAnulty
said. ``As they say, the apple don't fall too far from the tree.''

Across the table, Jim Murray announced almost apologetically that he is a Jeff
Gordon man. But he said his love of the sport goes deeper than a number on a
hood or an advertiser's decal on a roof.

He thumped his chest to describe how the roar of the passing cars affects him.
There is poetry in the wind that rushes over him as the machines roar past. The
residue of burning tire that coats the track is a thing of beauty to him.

``I still believe race fans are race fans, OK?'' he says. ``And because you
lost Dale, this is going to take awhile. But they'll gravitate to other
drivers, and they will stay race fans, because they love racing.''

Around these parts, NASCAR is more than just a sport, said Kevin Parsons:
``It's a way of life.''

Like Dale Jr., Parsons followed a famous daddy into racing. Parsons' father was
1973 Winston Cup champion Benny Parsons. The younger Parsons raced for about
four years ``until I ran out of money.'' He now teaches math at the local
community college.

He said he thinks that cycle is what has kept the sport - and its stars -
humble.

``You know how it is in football and basketball,'' he said. ``Guys, by the time
they're 15 years old, people tell them how special they are, that the rules
don't apply to them if they'll just put the ball in the hoop. Racing doesn't
have that. No matter who you are, you have to start out racing for $500 purses.

``Sweat and tears on your own stuff. And when you do get there, I think you
appreciate it a little more.''

Despite the big tracks and the myriad endorsements, Parsons said NASCAR has
still not been tainted by a major scandal and has retained much of the family
flavor it started out with. The only Sundays it takes off between February and
November are Easter and Mother's Day.

People loved Earnhardt because he was like a neighbor, a friend, even a family
member.

Barbara Sears liked him because he reminded her so much of her late husband,
``Big'' John Sears, who raced at Rockingham when the speedway there was still
only a dirt track.

His widow pulled out a dust-covered framed newspaper clipping showing off her
husband's No. 10 Mercury - the car he once won in after running the last 17
laps with only three wheels.

``Back then, they may have called him The Intimidator,'' she said with a laugh
as she showed off a photo of him rubbing baby powder on his bumpers to cut the
wind drag. ``I could see a lot of my husband in Dale.''

Philip Morris to Unveil 'Reduced-Risk' Cigarette Within 2 Years

Naples, Florida, Feb. 22 (Bloomberg) -- Philip Morris Cos., the world's largest
tobacco company, plans to introduce a cigarette within two years that it
expects will help reduce the risk attributed to smoking, the head of its U.S.
tobacco unit said.

The maker of Marlboro cigarettes is giving ``special focus'' to developing a
conventional cigarette that reduces potentially harmful carcinogens found in
cigarette smoke, said Michael Szymanczyk, president and chief executive of
Philip Morris USA.

R.J. Reynolds Tobacco Holdings Inc., the No. 2 U.S. cigarette maker, is testing
a product called Eclipse in Dallas and Fort Worth, Texas, that it said releases
fewer carcinogens. The Massachusetts Department of Health has asked U.S.
regulators to investigate RJR's claims. Cigarette maker Vector Group Ltd. said
last month that it would begin selling a similar product this year.

``It's not about being first, it's about being right,'' Szymanczyk said in
remarks at the Consumer Analyst Group of New York conference in Naples,
Florida. ``I don't see this as a five- year exercise but something that will
happen over the next couple of years,'' he said.

Philip Morris already has developed an electronic smoking device, called
Accord, that heats rather than burns tobacco. The battery-operated device
encases a cigarette, eliminating smoke when the cigarette is still. Smoke is
still generated by puffing.

``There are 40-odd constituents in smoke that public health authorities have
determined are potentially harmful,'' Szymanczyk said. Philip Morris is ``not
anxious to jump into the fray'' to introduce a reduced-risk cigarette that
doesn't significantly reduce those carcinogens, he said.

Shares of New York-based Philip Morris rose 14 cents to $48.20 in midafternoon
trading. They've more than doubled in the past 12 months. The company also
makes Kraft cheese, Maxwell House coffee and Miller beer.

First Family Foibles in US History

By RON KAMPEAS, February 23

WASHINGTON (AP) - Want a friend in this town, goes the saying, choose a dog.
Family, you can't choose. But it can bite you just as hard.

It's a presidential lesson as musty as George Washington's namesake
step-grandson - a seminal frat boy - and as fresh as the latest Clinton
problem: Hugh Rodham's receipt of $400,000 (now refunded) to make pardon pleas.

``I love my brother, but ...,'' Sen. Hillary Rodham Clinton said Thursday and
paused the pause that retrenches, before continuing: ``I'm just extremely
disappointed in this terrible misjudgment that he made.''

That ``but'' burrows through time.

There it is, echoing in George Washington's letter to Princeton University,
warning the folks there about George Washington Parke Custis' penchant for
partying.

``Little Wash,'' the president wrote, has ``an almost inconquerable disposition
to indolence in everything that did not tend to his amusements.''

Soon enough, Custis got the Princeton boot for ``having endeavored in various
ways to lessen the authority and influence of the faculty,'' the university
concluded, according to a 1990 book by first lady historian Carl Sferrazza
Anthony.

Mrs. Clinton's ``I love my brother, but ...'' also has an ancestor in Abigail
Adams' sorrowful contemplation of son Charles after his premature drink-induced
death: ``He was beloved in spite of his errors, and all spoke with grief and
sorrow for his habits.''

Presidential tales of mad wives, errant children, and sibling deviltry abound
through subsequent decades, rivaling Shakespeare for drama.

In modern times, President Nixon bugged his brother Donald to make sure he
didn't embarrass him with bad business deals - the disclosure of a loan had
backfired against Nixon in the 1960 campaign won so narrowly by John Kennedy.

President Ford scored points for cleaning up the White House after Nixon left
in disgrace, but he also scored a little mortification from son Jack, who
enjoyed a shaggy look and stepping out with celebrities. Jack Ford complained
that Secret Service agents cramped his romantic style, and admitted to smoking
marijuana.

The Reagans and Bushes had difficulties with the kids, too.

Patti Davis, Ronald Reagan's daughter, bared her body to Playboy and her soul
to many others, once saying she was ``lucky to be alive'' after a period of
saying yes to cocaine.

Neil Bush, son of then-President Bush, earned federal sanctions in 1991 for
conflict of interest after his Savings and Loan collapsed in 1988, costing
taxpayers $1 billion. He had been a partner to two of the S&L's major clients.
President Bush said he loved him, but - well, you know the rest.

President Carter's stock answer to Billy questions was just ``I love him'', no
buts. Billy Carter's highjinks draw perhaps the closest parallel with Hugh
Rodham.

Both men decried the attention roused by their presidential links, but were
accused of using that cachet to earn money: Carter from Libya in 1979; Rodham
from the former Soviet republic of Georgia. Billy Carter once said, ``Nothing
embarrasses me.''

Former President Clinton has already felt the pain of brotherly trouble. His
half brother Roger, who served over a year in prison on a cocaine distribution
charge in the mid-1980s, once confessed to having a ``walk-in closet full of
skeletons.''

Roger Clinton was charged Wednesday with drunken driving and disturbing the
peace after a weekend fracas at a Los Angeles nightclub. Not long before, Bill
Clinton had pardoned him for the cocaine conviction.

Now, President Bush, once a heavy drinker who gave up alcohol, seems aware of
the risk of having someday to say, ``I love him, but.'' He said Thursday his
guidance to his family is ``behave yourself.''

Presidents with trouble-prone relatives might take some solace in the
post-Princeton path of ``Little Wash,'' the first errant presidential relative.

George Washington Custis joined the army, achieved officer's rank, and closed
out a long life writing plays that extolled patriotism. The youthful rebel
apparently was wrung out of him.

Of course, there was HIS daughter, Mary, who married Robert E. Lee, the
Southern general who tried to break up the Union in the Civil War. Custis no
doubt loved her, but.

[J2jurado]

Suntory to Cut High-Interest Debt, May List Tipness, Paper Says

Tokyo, Feb. 25 (Bloomberg)-- Suntory Ltd., Japan's fourth- largest largest
brewer, aims to reduce interest-bearing loans by about 260 billion yen ($2.25
billion) over three years by selling bonds, the Mainichi reported without
citing sources.

Suntory, whose debts will reach 52 percent of total group sales by fiscal 2000,
plans to replace high-interest loans from banks and life insurance firms with
lower-interest corporate debt, the newspaper said.

The company is considering floating its Tipness sports club on the Japanese
stock market in about three years. It may also list two other subsidiaries, a
water distribution company in America and a beer producer in China, on stock
markets in those countries, the report said.

Earlier this month, privately owned Suntory, which also distills whiskey and
other spirits, said group net income rose to 13.9 billion yen ($120 million) in
2000 from 9.07 billion yen in 1999. It attributed the 53 percent rise in annual
profit to sales of ``Magnum Dry'' brand low-malt brew, ``Malt's'' regular beer
and soft drinks.

SA winemaker toasts $3.8m profit

24 February, 2001

South Australian wine company Petaluma has reported a $3.8 million net profit
after tax for the first half of the financial year.

That is an 11.5 per cent increase on the same time last year.

Petaluma says the profit growth came from a 19.9 per cent growth in revenue,
largely generated by exports to the United States.

SAB invest in more Chinese Breweries

February 23 (Reuters) - South African Breweries through its Chinese joint
venture company CRE Beverage (CREB), has established a company called China
Resources
(Anhui) Brewery, in the east-central Chinese province of Anhui. The
company has effectively acquired the brewing assets and brands of three
breweries - with a combined capacity of 3.8m hl.

CREB is to invest some US$67 on refurbishing and expanding these,
funding coming by way of third party debt and the balance by shareholder
funds, including US$15 from SAB.

The investment brings CREB's total number of breweries in China to 11,
with a combined total capacity of 17m hl. Most of CREB's breweries are
in the North East of China but the new acquisition are in line with the
company's strategy of achieving a sizable market position in a
geographically-segmented second tier market, with relatively limited
competitin. Anhui province has a population of some 63m, 40% of which is
urbanized. The main brand is Shengquan, rated 11th largest in China.

SAB in Africa Business for 20% of Castel

London, Feb. 24 (Bloomberg) -- South African Breweries Plc, the world's No. 5

Heineken moves into German market: Joint venture should help Heineken sales in
Germany, Paulaner sales elsewhere

FEB 23, 2001 (Reuters)- Heineken today announced it has made its a long-awaited

move into Germany, the largest beer market in Europe, through a joint
venture with brewing group Schörghuber.

The Dutch brewer, the second largest in the world behind Anheuser Busch,
will own 49.9% of the new company with Schörghuber unit Bayerische
BrauHolding controlling the rest. The company, to be called BrauHolding
International, plans to export Paulaner Weiss -- using Heineken's sales
and distribution network to market the beer around the world.
Under the terms of the deal, Heineken also gets a minority stake in
German brewers Paulaner and Kulmbacher, both controlled by Schörghuber,
a Bavarian holding group that owns one of the country's largest brewery
businesses.

Heineken has been trying to sell its beer in Germany for the past 10
years, but its sales there still lag far behind those of German
competitors. Karel Vuursteen, chief executive, said: "The first step
into the German market looks very promising. Currently the German beer

market is fragmented with a large number of small breweries. This

situation will not continue in the long run."

A fragmented regional market that has long kept German brewers from
setting up nationwide distribution networks and growing has also served
to protect the 1,277 German breweries from outside invasion. Now that
German beer consumption has begun to slide, analysts expect German
brewers to either merge or welcome foreign alliances such as this one.

HOP NEWS A Publication of the Washington Hop Commission and Hop Growers of
Washington
February 23, 2001 - Number 538

>>POWDERY MILDEW MEETING SCHEDULED<<
Dr. Walt Mahaffee, USDA-ARS, will be in Yakima to discuss the findings
of his hop powdery mildew research program:

Wednesday, March 7 1:00 p.m. Yakima Masonic Center - 2nd Floor 504 N. Naches
Ave.

Walt will demonstrate the weather-based powdery mildew prediction model,
and show the type of data that will be available during the 2001 crop
year. He will show growers how to go through the model, and the
decision-making process that it supports. Cultural data will also be
discussed, including practices that work and those that don't.
There will also be an open discussion with Walt and Mark Nelson on
practices and their effects on powdery mildew…what appears to work and
what doesn't?

>>HOP COMMISSION ELECTS OFFICERS<<
Moxee hop producer Mick Desserault was elected to chair the Washington
Hop Commission during 2001 at the February 20 meeting of the board.
Desserault has served as the WHC Treasurer for the past two years.
Other executive committee positions include: Dean Desserault, Vice
Chair; Stacy Puterbaugh, Secretary; and Bernard Gamache, Treasurer.
We extend sincere appreciation to Tom Newhouse for his efforts as
Commission Chair during the past year. Tom will continue to serve as a
member of the Commission.

>>HOP PATHOLOGY RESEARCH FACILITY TO BE ESTABLISHED<<
An ongoing problem for WSU hop researchers involved in pathology and
varietal development programs has been the lack of hop yards to conduct
this research at the Prosser research station. Thanks to the combined
efforts of the Washington Hop Commission and Moxee area hop growers, a
new facility will be established during 2001 to meet these research
needs.

Two small research hop yards totaling 3.5 acres will be constructed this
spring at the USDA research farm east of Moxee. Half of the area will be
established for the purpose of testing powdery mildew fungicides. The
remaining area will include a small plot for testing downy mildew
fungicides, and a large area for testing new selections from breeding
programs for susceptibility to diseases. The breeding program selections
established at this site will be pre-screened for disease susceptibility
in the greenhouse and in single-hill plots at Prosser. Fungicides will
also be pre-screened in laboratory assays and greenhouse tests, to
insure that candidates tested in this area have a high probability of
successful disease control. The ability to conduct this research under
commercial conditions will greatly assist in identifying new fungicides
and new hop varieties that will enhance future production. We sincerely
appreciate the willingness of Moxee area growers to work with us on this
project, for the benefit of the entire U.S. hop industry.

Moxee hop grower Lee Desmarais has offered to spearhead the project,
including trellis construction, irrigation system installation, and
planting. He will also manage the yards throughout the growing season,
and provide all necessary cultural activities. USDA is providing
substantial assistance, in addition to the land and water. Their
personnel will assist Lee in the development and operation of the site.
We appreciate the efforts of Jerry Gefre and Carroll Caulkins in getting
this project underway.

Donated materials will greatly assist this effort. The "wish list" includes:
110 anchor poles (5-6" tops x 21 ft.)
175 pressure-treated posts (3-4" tops x 6.5 ft.)
175 field poles (5-6" tops x 18 ft.)
350 - 1/4" cable clamps
40 - 1/4" cable thimbles (for line wires)
325 -1/4" nicopress aluminum sleeves
35 - 1/8" nicopress aluminum sleeves
120 anchors (screw anchors?)
125 - 20 penny nails
100 pounds of " steel banding
500 - 3/4" banding seals
1 bale twine (80# or 100#)
2000 hop clips
1 box of 3" hop staples

We will also seek donations for the drip irrigation system, once the
design is worked out. If you have items that you wish to donate, please
e-mail Ann George at whc...@televar.com. Ann or Lee will contact you to
confirm arrangements.

>>BIG BUSINESS TAKES SHOT AT UI RATE INCREASE<<
The so-called "stable employers" led by Boeing and the Retailers
Association staged a run at increasing seasonal employer unemployment
premiums during early of February. They convinced the Association of
Washington Business (AWB) to support and have introduced House Bill
1605, which increased premiums on rate classes 19 and 20. This has been
an issue for a number of years. Last year a deal was struck to give the
stable employers relief by lowering rates in rate classes 4 through 17.
But, they did not feel this was enough.

Some of our Legislative friends were co-opted into sponsoring the bill
under the guise of saving the system money by reducing benefits. In
reality, the bill also increased premiums in the upper rate classes.
Hop Growers of Washington played a key role in rebuffing the proposal
through contacts with AWB and legislators. Sponsors pulled the bill.
This is a prime example of why generic statewide organizations do not
always look out for all of their member's concerns. AWB generally
supports business positions, but when the issues are contentious between
industries, someone will not be heard. Since this issue came up, we have
had serious discussions with AWB about their operations. They have
agreed to be more considerate of our concerns in the future.

>>OSHA OR WISHA? DON'T BE FOOLED OR CONFUSED<<
Employers in Washington State should be wary of paying for workshops or
materials that promise an education in federal OSHA workplace safety
rules. That's because, with only a few exceptions, employers and
employees in Washington are covered by rules outlined by WISHA
(Washington Industrial Safety and Health Act). This means most
Washington employers are not covered by the federal regulations of OSHA
(Occupational Safety and Health Act). Within the state, OSHA rules only
apply to federal agencies, post offices and employers on federal
reservations.

Some employers in Washington have reported noticing an increase recently
in mailings about fee-based workshops, seminars and other materials
suggesting that Washington employers need to know about OSHA standards.
The Washington Department of Labor and Industries, which oversees
workplace safety in the state, offers no-fee workshops on WISHA safety
and health rules, such as accident prevention programs, ergonomics and
respiratory protection. Information about workshops and other WISHA
training and outreach services is available at www.lni.wa.gov/wish, by
calling 1-800-4BE-SAFE or from any of L&I's 22 offices throughout the
state.

>>FREE WASTE PESTICIDE DISPOSAL<<
The Washington State Department of Agriculture will sponsor Waste
Pesticide Collection events on April 23-24 in Yakima and April 25 in
Pasco. In order to participate in either event, customers must sign up
by March 8 and send inventory to WSDA by March 22.

A third collection event is scheduled for September 18 in Prosser, with
a sign-up deadline of July 26. To participate in any of these events,
please contact WSDA by calling the Olympia office toll free at
1-877-301-4555 prior to the sign-up deadline.

>>INITIATIVE SEEKS $1 BILLION TO PROTECT AND CONSERVE CLEAN WATER<<
OLYMPIA - Citizens may have an opportunity to vote this fall on a new
ballot initiative called the Clean Water Investment Act. The initiative
was filed with the Secretary of State in Olympia in early February. It
calls for investing $1 billion over the next decade to protect both the
quality and the availability of water for drinking, for agriculture and
other economic uses, and for fish and wildlife.

The initiative is sponsored by Forward Washington, an organization
founded by Dan Silver of Olympia. Silver said the state's dwindling
financial investment in water and the problems it is creating prompted
him to launch the initiative. "Our water supplies are in trouble in this
state, but it is hard for water to compete in the state budget against
abused children, traffic gridlock, school improvements and sex
predators," said Silver.

Some of the problems he cites:
- During the past 2 years, 40,000 WA residents had to boil their water
to make it safe to drink.
- Almost 500 water systems failed to meet drinking-water standards in
2000.
- Numerous towns have imposed construction moratoriums because they
can't afford to improve their drinking water or wastewater systems.
- More streams are drying up each summer because of over-withdrawals.
- 17 species of salmon have been listed as threatened or endangered.
- More than 600 streams and lakes fail to meet clean-water standards.
"Each generation of Washington citizens has acted to improve its basic
infrastructure services," Silver said. "Now it is our responsibility to
make the necessary investment to protect our drinking water and restore
water to our rivers and creeks."
Silver said the lack of investment in treatment and delivery systems is
making it hard for rural communities to meet their basic economic needs.
Also, inefficient water use is pitting cities, farmers and fish against
each other in a battle over water supplies. "Many farmers and cities are
using far more water than they need to because of outdated irrigation
and delivery systems," he said. "By making those systems more efficient,
we can free up water for our citizens, for more agriculture, and also
for saving fish."
The Clean Water Investment Act calls for issuing $1 billion in bonds,
which would be paid for through a one-tenth percent sales tax. Under the
initiative, 30% of the funds would be invested in facilities to treat,
conserve and deliver drinking water, and another 30% in facilities to
collect, treat or re-use wastewater and stormwater. Half of the money
for drinking water and wastewater facilities would be provided to
communities with up to 5,000 residents.
Fifteen percent of the $1 billion would be used to construct or replace
irrigation systems in an effort to reduce waste and improve water
quality. The portion of water saved using money from the initiative
would be returned to its source. Farmers could keep any portion of water
that is conserved through their own investment. In a project using both
public and private investment, the saved water would be split according
to the percentage each party contributed.
To help keep pollution from flowing into streams and to protect valuable
fish and wildlife habitat, 10% of the initiative money would be used to
buy streamside property (riparian areas) from farmers.
The final 15 percent of funds would be used to buy or lease water rights
from interested farmers. The purchased water would be kept in streams to
help restore and maintain adequate flows.
Silver said he has been elated by the far-reaching support he has
received for the initiative. "People understand the importance of clean
water, and this initiative gives them an opportunity to say 'Yes,
keeping our water clean and using it more wisely is a good investment.'"
A Web site at www.forwardwashington.org contains additional information,
or e-mail dans...@forwardwashington.org.
>>CALENDAR OF EVENTS<<
Mar. 8 - Hop Growers of Washington Board of Directors and Retro Board
meeting, 9:30 a.m. - 12:00 noon, Bonair Winery, Zillah. Call
509-453-4749 for agenda information or a map to Bonair.
April 10 - Washington Hop Commission regular meeting, 10:00 a.m., Bonair
Winery, Zillah.

Peru Politicians Want Sex Videos Before They're Given to Clergy

Lima, Feb. 23 (Bloomberg) -- Peru's video scandal has taken a new twist after a
prosecutor proposed handing tapes of people in sexually comprising situations
over to the Catholic Church to return to people unwittingly caught on film.

Some legislators are saying, ``not so fast,'' and they want to review the tapes
first. That's rankled other politicians who say people should have behaved
themselves in the first place.

``Voters have a right to know about the conduct of those candidates they plan
to vote for,'' said opposition legislator Martha Chavez. ``Anyone that wants to
participate in political life must be willing to allow an x-ray on his life.''

At issue is a yet unknown portion of 720 taped videos that authorities seized
from the house of Vladimiro Montesinos, an ex- spymaster of former President
Alberto Fujimori who is now wanted on charges ranging form drug-running to
murder. Montesinos apparently taped the videos to manipulate politicians and
others by threatening to expose them.

With general elections scheduled for April 8, revelations of that nature could
jeopardize political futures if candidates were among those caught in
Montesinos' surveillance.

The attorney general's office plans to simply return such tapes to those
unwillingly caught on them as long as ``there is no criminal content,'' said
Mali Esparza, a spokeswoman at a special office dealing with the videos at the
attorney's office. The church was chosen as the most appropriate vehicle to
return them, she added.

A bribery scandal and mounting political pressure brought down an increasingly
authoritarian rule by Fujimori last year. Fujimori, now in Japan claiming to be
a national of that country, wielded enormous influence across all sectors of
society in part because of the spying on his enemies carried out by Montesinos,
critics say. The tapes in question are part of Montesinos' tools of blackmail.

Private Viewing

Six special judges are viewing the hundreds of tapes to classify them into four
categories: those without criminal content or ``intimate'' situations; those
where individuals or low-ranking officials are caught violating laws; those
were high-ranking officials violate laws; and those where violations are so
serious that ``it affects the political, moral and social stability of the
country.''

Unlike the other categories, the so-called intimate videos would be returned
without any penalty. This category involves all taped videos containing sex
acts and possibly drug consumption, because possession of small quantities of
drugs is not generally a criminal offense in Peru.

``If they are intimate scenes of persons who have been simple victims of the
unfortunate surveillance of the intelligence service then I think the process
of returning them is adequate,'' said Luis Iberico, who heads the list of
congressional candidates of the Independent Moralizing Front party.

Chavez, known for her staunch support of both Fujimori and Montesinos during
the last decade, said that both the name and a description of the film should
be made public.

The church has yet to even say it would receive the videos. An announcement is
expected this month when Peru's top religious authorities return from Rome.
Nearly all authorities are at the Vatican, where Peruvian Archbishop Luis
Cipriani was elevated to cardinal.

[John Harper]

In article <20010222001010...@ng-ff1.aol.com>,
J2jurado <j2ju...@aol.com> wrote:

>In the past year, the area of fruit-bearing vines has increased almost
>13 percent to an estimated 106,000 hectares (262 acres), from 94,000
>hectares, the Australian Wine & Brandy Corp.'s Stanford said.

Wrong. 106,000 hectares is about 262,000 acres not 262.

>Yields are now expected to average close to the five-year average of
>about 12.2 tons a hectare (30 tons an acre), Stanford said.

Wrong again. 12.2 tons a hectare is about 4.9 tons an acre. (And were
they really tons or tonnes anyway? 12.2 tons = 12.4 tonnes approx.)

John Harper, School of Mathematical and Computing Sciences,
Victoria University, Wellington, New Zealand
e-mail john....@vuw.ac.nz phone (+64)(4)463 5341 fax (+64)(4)463 5045

[J2jurado]

Before the requisite picking of nits, which I value for 'beer bits', I'd
remind all for clarification:

har...@mcs.vuw.ac.nz :

<<J2jurado <j2ju...@aol.com> wrote:

>In the past >>

J2jurado quoted a news item verbatim...and it had some big errors converting
hectares to acres.

...And I thank the poster for offering the corrections. I am not sure how an
editor or proofreader missed those ones. Sometimes, what I post has serious
errors, and these are flushed up. Nice to see that someone caught these
details...thanks!

[J2jurado]

http://www.ireland.com:80/newspaper/finance/2001/0223/fin23.htm

Guinness jobs in jeopardy

By Brendan McGrath and Ciaran Brennan Friday, February 23, 2001

CLOSURE: Guinness Ireland, Diageo's brewing subsidiary, will make a decision
soon on the future of the packaging plant in Dundalk, where almost 300 workers
are in danger of losing their jobs. Guinness Ireland managing director Mr Brian
Duffy declined to reveal that decision in advance of an agreement with unions
representing the workforce, but Guinness has previously said that the Dundalk
plant has a far higher cost base than other locations.

Earlier this month, it emerged that a consultant's report had recommended that
Guinness should re-examine its plan to close Dundalk. The company at the time
expressed disappointment with the consultant's recommendation and the fact
that the report did not offer any alternative solutions.

Mr Duffy said that, while the overall beer market in Ireland fell by 2 per cent
in the period, draught Guinness increased its market share, rising to 42 per
cent. The fall in the beer market is attributed to the growth of ready-to-drink
spirits products and the strong performance of cider, which is dominated in
Ireland by C&C's Bulmers brand. Guinness introduced its Cashel's cider brand
last year and Mr Duffy said that its growth in the first half was well ahead of
target.

Overall Guinness volumes across the world rose by 3 per cent and export
shipments of stout from St James's Gate were up by more than 20 per cent in the
first half of the year. Mr Duffy said that exports account for more than half
of the production in Dublin.

Meanwhile, R&A Bailey chief executive Mr Frank Fenn said yesterday the company
was planning to recoup some of the £6.5 million (euro8.3 million) invested in
the failed ICON visitor centre and entertainment complex at Leopardstown
Racecourse through the sale of the business.

"It's a lease arrangement with Leopardstown and we're bringing that to a
close," said Mr Fenn. ICON was developed primarily for the tourist market. But
the centre was forced to close after it failed to meet its visitor targets.
The company's strategy has resulted in Baileys achieving its target of sales of
five million cases annually, Mr Fenn said.

http://www.adn.com:80/weekend/story/0,2645,242100,00.html

Beer columnist brews up another job
What ales you

By Dawnell Smith (Published Feb 23 2001)

I started writing this column in 1996 about the same time I went to work at
Sleeping Lady Brewery. I painted pipe insulation, cleaned beer lines, scrubbed
tanks, polished copper and generally contributed to the mayhem of an infant
business. As the year progressed, I learned to brew beer, tend bar, manage the
floor. Now, all that hard work is paying off.

But first, a little more back story. After becoming a mom, we moved and I
brewed at the Skagway Brewing Co. Eventually, we came back to Anchorage so I
could nurture a writing career.

From then on, I spent the day with my family and the nights with my trusty
keyboard. I've written business, general news and other articles for all sorts
of publications, but I managed to sustain my professional relationship with the
brewing community through work for periodicals like American Brewer, Brew Your
Own and BrewPub magazine.

Maintaining those connections led to my new job: brewmistress. I spent a week
with former Sleeping Lady brewer Mike Hartman so he could pass the Master
Brewer torch to me and then go on his way. I expect to spend a few months
reacquainting myself with brewhouse nuances as the place goes through a growth
spurt.

This expansion began long ago with an equipment order but really started to
snowball on a quiet Monday a few weeks ago when Gary, Tom, Mike, Dave, Ric and
Brent moved four heavy, unwieldy brewing vessels into the brewery.

By the time I arrived, Brent was gingerly moving an extendible forklift into a
trailer to retrieve a pallet loaded with a 10-barrel fermentation tank. The
rest of the work took a measure of forethought and a dash of brute strength. By
the end of the day, they had brought in two 10-barrel fermentation tanks, a
5-barrel fermentation tank and a 10-barrel bright tank used for conditioning
and clarification.

The whole affair went without a hitch, so I felt relieved to get the vessels in
place and exhilarated to see the brewery's capacity increase by about 50
percent. I also felt a bit nervous. I want to create beers that live up to
Hartman's medal-winning reputation and ensure that every beer enthusiast can
boldly sip where no beer lover has sipped before. I will continue to supply
establishments like Humpy's Great Alaskan Alehouse and The Whale's Tail with
beer. And most of all, I'll avoid snagging my clothes and bumping my limbs on
the fittings, clamps and other parts poking out of the new vessels.

I feel like a sailor getting her sea legs back. Once I get into the foamy
spray, it all comes back to me.

There's nothing like the smell of first hops in hot wort.

Dawnell Smith will be brewing words and worts from now on. Her e-mail address
is writ...@alaska.net.

http://www.bergen.com:80/food/beer21200102218.htm

Peerless imperials are the toast of a tasting

Wednesday, February 21, 2001 By TONY FORDER

The winter months are a good time to taste imperial stouts, and there's no
better place to taste them than the Russian Tea Room in Manhattan.

With dancing bears cavorting on the bronze chandeliers overhead, waiters in red
jackets poured 15 imperials at a recent tasting. We tried Samuel Smith's;
Weyerbacher; Brooklyn Black Chocolate Stout; Victory's Storm King; Old
Rasputin, from California's North Coast; Rogue, at 11 percent alcohol; and
Courage 93, the last year that brand was made.

British brewer Miles Jenner traveled from afar with his re-creation of a stout
worthy of a czar: A. Le Coq Imperial Extra Double Stout, a beer to make you
shout. The A. Le Coq 1999, bottle-conditioned for a year, was the best, along
with a special surprise from importer Mattheus Neidhardt, a 1983 version of the
Courage Russian Imperial Stout. Along with the stouts, three examples of its
close relative, Baltic Imperial
Porter, also were poured: Full Sail from Oregon, Sinebrychoff 96 from Finland,
and Heavyweight's Perkuno's Hammer from Ocean Township.

We tasted some new beers. Biere du Miel (honey beer) from Belgium's Dupont
brewery; sweet, as you might expect, but with the champagne-like
characteristics of this farmhouse brewery. Flying Fish Brewing Co. of Cherry
Hill has released Grand Cru, a Belgian-style golden ale, in 22-ounce,
wax-sealed bottles. And Climax Brewing Co. of Roselle Park, famous for its
ales, has brewed Double Bock, a strong German-style lager.

To further whet -- and wet -- your appetite, Tim Schafer's Cuisine in
Morristown is planning its Gourmet Beer Dinner for March 7. For more
information, call (800) 351-2537.

http://www.azcentral.com:80/home/food/0221cougan21.html

West-side brew pub rings a change on Bell

Howard Seftel The Arizona Republic Feb. 21, 2001

Why aren't there more places like Cougan's Brewery & Grill on the west side?
Maybe a restaurant industry
analyst or a sociologist has some answers. All I know is I'm grateful it's
there. Set at ground zero in the
chain-restaurant intergalactic universe - West Bell Road stretching from
Interstate 17 to Sun City - Cougan's provides a comfortable refuge from the
numbing culinary monotony.

Don't get the impression, however, that Cougan's is some funky hotbed of
originality and flair. It's not. You won't see foreign words, exotic
ingredients or trendy dishes on this something-for-everyone, all-American
menu. But there's enough individuality and talent here to make it stand out
from the corporate competition. And prices are right, too. Except for a few
steak and seafood dishes, most entrees come in under $15.

You won't waste much time soaking up the decor. Cougan's has a mostly generic
brew pub look: gleaming vats, lots of polished wood, brick accents, exposed
ductwork, an open kitchen, beer sold in buckets. However, the room is cleverly
divided into several distinct spaces, so you never feel as if you're dining in
awarehouse. And the pinpoint lighting, tightly focused on the tables, also
helps.

Capable kitchen

What helps most, however, is the food. The kitchen doesn't get everything
right. But it gets enough right, and often enough, to turn first-timers into
potential regulars. The Chicken Quesadilla appetizer ($7.95) is certainly
right. That's what happens when you enfold chicken, black beans, bacon and
cheese in a tortilla, and bring it to the table crisp and hot. Lobster
Spinach-Artichoke Dip ($8.95) is creamy enough to win the endorsement of the
Wisconsin Dairy Association, and the cheese-topped baguette slices it comes
with make the dipping even more fun. And in a town full of onion soup
mediocrity, Cougan's superior version ($2.50), punched up with ale, will help
you remember why you liked onion soup in the first place.

Five Grilled Shrimp ($7.95), though, won't move the needle on anyone's munchie
meter, but I guess folks who order this aren't looking for thrills in the
first place. Meanwhile, the menu advises that the Caribbean Beef
Skewers ($6.95) are "not for the faint of heart." Unfortunately, they're not
for most anybody else, either. They're just one-dimensionally spicy strips of
flank steak, inelegantly accompanied by a pile of mashed potatoes. This is not
my idea of a pre-dinner nibble.

You're better off postponing a longing for beef until main-dish time, anyway.
That's because Cougan's London Broil is remarkable. Smoked in-house, marinated
and thinly cut, it's full of rich, beefy, smoky flavor. Teamed with thick
mashed spuds and sauteed veggies, it gives you a full $12.95 worth of
meat-and-potatoes bang for your bucks.

Fish and Chips ($10.95) aren't far behind. Here, the thin, crunchy breading
doesn't hide the charms of the moist cod inside. And if the thick-cut chips
had arrived directly from the fryer, instead of twiddling their thumbs in a
holding basin, this platter would have had no shortcomings at all.

Other dishes please

The kitchen has a way with other seafood dishes, as well. Grilled Halibut
($15.95) is nicely crafted, freshened with herbs and drizzled with an
understated orange butter sauce that gives the fish a little pizazz. The plump
scallops in the Scallops Provencal ($15.95) are as good as any you'll find
anywhere, and the kitchen doesn't stint on the portion. Next time, though,
let's hope the chef takes it a bit easier with the lemon in his sauce. On this
night, it outmuscled the scallops' delicate flavor.

Meat Loaf ($10.95) also is a winner. Although reasonable minds may disagree, I
prefer my meat loaf thick, dense and heavy. Happily, Cougan's chef feels the
same way. He loads up two big slabs with beer-braised
peppers and onions, and adds a bit of wine sauce. What's not to like?

At times, though, the kitchen can put you to sleep. Two bland pasta dishes,
Chinese Noodles and Seafood Fettuccine (each $12.95), don't taste like China,
the sea or anything else. Roast Chicken ($12.95) is strictly for folks who've
lost all interest in food. An entree Chinese Chicken Salad is done in by a
"sweet peanut sauce" that's 99 percent sweet and 1 percent peanut. And the only
reason to order the harmless pizza is to keep your thirst up while you knock
back a beer.

That's actually not a bad idea. Cougan's home-brewed suds, particularly the
heavier, more full-flavored ones, have real appeal. I'm partial to the powerful
Barleywine ($3.75), served in a 6-ounce brandy snifter. And the hearty,
high-alcohol Amber Ale has a pleasant malty kick. But I think I'll have to wait
until summer, when it's 110 degrees outside, to fully appreciate the lighter
brews, such as the Blonde Beer and Gold Ale.

Desserts? Go someplace else. Believe it or not, the principal seasoning
ingredient in the cheesecake tastes like salt. The leadChocolate Torte goes
down like an anvil. And there should be a warrant out for the puff pastry that
mugs the Strawberry Napoleon.

Still, Cougan's beams a shaft of light into a mostly dark, corporate culinary
corridor. Bell Roaders, unite: You have nothing to lose but your chains.

http://www.indiaserver.com:80/thehindu/2001/02/20/stories/0420403y.htm

No ducks only Foster it

By T. Lalith Singh, February 21

IT'S FROM down under. Hold, we are not talking about the awesome cricketers
from Australia nor are we referring to the hopping kangaroos. This is about
Foster. Foster? Ummm...

Did anything click? Yeah, we are talking about the same Foster which is more
popular as `Australian For Beer'. For long, Hyderabadis had seen the teasers
that interspersed the cricket coverage on the telly. One watched the
commercials and felt a tingling sensation in the taste buds every time the name
was mentioned.

Relax and sit back. The wait is over for the brown bottle, considered as the
fastest growing international premium beer, it's now available in the city.
The 330 ml of beer available at all outlets for Rs. 31.50 is the only beer that
comes in brown bottles unlike the other brands sold in white and green colours.

It's truly international and promises to give the same taste whether you are
sipping in New York or London or Hyderabad. "Foster offers a consistency in the
taste which is same wherever you taste it," says Pradeep Gidwani, Managing
Director, Foster's India.

The official beer of the Australian cricket team is also credited with being
the third widely distributed beer brand in the world. The brand which
registered successful launches in Maharashtra, Goa and Pondicherry appears to
have set its eyes on the burgeoning techies in Hyderabad. "We have a lot of
activity on the Internet to catch this segment which is beingspecially
targeted," Gidwani reveals.

Let this summer be different. And as Australia battles on the Indian turf, cock
a snook at them with a bottle of Foster. How does it taste? Do not ask
questions, just go and sip it...er, gulp it.

http://www.abqjournal.com:80/news/256765news02-21-01.htm

Plan Would Curb Single-Container Liquor Sales

By Dan McKay Journal Staff Writer February 21, 2001

City Councilor Greg Payne wants to ban the sale of some alcoholic drinks —
including single containers of beer — within 500 feet of schools, parks and
other areas. The proposal is scheduled for introduction at a City Council
meeting tonight. The 31-page bill, which would revise the city's zoning code,
will be assigned to the council's land use committee, Payne said.

"It's a very measured and common-sense response to a serious problem we have
out there," Payne said Tuesday. Businesses would have four years to comply
with the proposed ordinance. The sales restriction would apply to stores
within 500 feet of residential zones, some schools, churches or city parks.
The bill targets small containers of "distilled spirits," beer in a single
container and fortified wines with an alcohol volume of more than 12 percent.

Liquor retailers will almost certainly oppose the measure, said Billy Baldwin,
who owns Billy's Long Bar.

"I don't really see the bill having a positive effect in any shape or form,"
Baldwin said Tuesday. He said Payne's proposal could hurt ordinary customers,
not just transients. For example, Baldwin said, some people try expensive
foreign beers by purchasing a single container, not a six-pack.

"It would really limit a lot of things for the regular customer," Baldwin said.
Albuquerque police Capt. Rob DeBuck, however, said Payne's proposal — which
would apply citywide — "would be a real powerful weapon" against crime.

City regulations already set limits on the sale of some alcoholic beverages
Downtown, Payne said.

"This is a tool that Downtown has been able to use to make their community a
little safer," Payne said. "We ought to give the rest of the city the same
opportunity."

http://www.sfgate.com:80/cgi-bin/article.cgi?file=/chronicle/archive/2001/
02/26/MN118946.DTL

Top of the Pop- The king of soda dispenses obscure brands and fizzy wisdom
from his L.A. store

Steve Rubenstein, Chronicle Staff Writer Monday, February 26, 2001

If youth is wasted on the young,
that goes double for soda pop,
says the soda pop king.

Kids do not fully understand the
wonders of soda pop, he says.
For there is nothing childish about
a spicy ginger beer that can
make a grown man cry, or about a
pungent spruce beer that
tastes like drinking a piece of
tree bark, or about a tangy
sarsaparilla that has more flavors,
nuance and sophistication
than that Cabernet Sauvignon stuff
that otherwise sensible
people are always fussing about.

Soda pop has all that, the king
says. No adult need ever
apologize for downing a bottle.

The soda king, John Nese, sells 300
varieties of soda from his
converted grocery store in Highland
Park, just north of
downtown Los Angeles. He stocks 26
root beers, 34 cream
sodas, five sarsaparillas, 12
ginger ales and nine ginger beers.
A ginger ale, the king says, is not
the same thing as a ginger
beer. Nese can explain why, and the
explanation is long.

"I love soda, all kinds of soda,"
the king says. "I love the
flavors. I love to open a bottle
and take a sip and say, 'Wow,
that was good. That was the taste I
remember.'That's what
this is all about."

Nese, a big guy with a healthy
thirst, opens a couple of bottles
a day. Root beer is his weakness.
He favors Dad's Old
Fashioned root beer but does not
oppose any root beer.

He likes sarsaparilla, too, which
may taste like root beer but
isn't. America used to drink
sarsaparilla, says the king -- now
it can't even spell it.

There is no more Pepsi, however.
The king is sore at the
Pepsi distributors who, he says,
tried to dictate how much
shelf space he must devote to their
product. Without Pepsi,
Nese is down to only 16 colas.

America drinks too much Pepsi and
Coke anyway, the king
says. There is nothing wrong with
the stuff, because there is
nothing wrong with any soda pop,

but there is more to life than big
blue and big red.

"Pepsi or Coke, Pepsi or Coke,"
says the king, thoroughly
disgusted. "That's all you hear.
That's the choice in this
country. Pepsi or Coke. It's
discouraging."

Nese, 57, has been enraptured by
obscure soda pop since he
began guzzling a rare root beer as
a kid in the back of his
father's downtown grocery store.

After Nese inherited the family
business in the 1960s, he
began kicking out the groceries in
favor of more sodas. Now
the store, still nominally called
Galco's Old World Grocery, has
nary a grocery in it. There remains
half an aisle of dusty soup
cans, gathering more dust. Nese
despises groceries as much as
he despises being pushed around by
soda distributors.

"My dad keeps telling me if I get
rid of any more groceries, I
can't call it a grocery store,"
Nese says, shrugging. "He has a
point, I suppose."

Almost all the sodas are in glass
bottles. Canned soda is like
canned wine, an abomination to the
faithful. Any decent
palate sensitized to the nuances of
ginger, vanilla, tamarind
and watermelon sodas knows to steer
clear of the metallic
taste of canned pop.

Customers may seek obscure brands
of soda for their nostalgic
value, but Nese stocks soda to
perpetuate the species. On the
shelves are Delaware Punch, Nehi,
Hire's, Moxie, Hank's,
Boylan's, Bubble Up and two
varieties of RC Cola - - regular
and draft. Coming are Nesbitt's and
Bireley's.

The Delaware Punch, a noble brew,
is imported from Mexico.
America no longer bothers with
Delaware Punch, Nese sighed,
even though it still bothers with
Delaware.

Most sodas sell for $1 or more per
bottle. One German root
beer flavored with nutmeg goes for
$6.05. That's because the
root beer comes in a fancy bottle,
not because the root beer is
particularly tasty, the king says.
His voice is low, for the king
does not like to disparage any root
beer, even an overpriced
one.

Other sodas should be avoided by
the faint of heart.
Blenheim's Hot Hot Ginger Ale, at
$1.45 a bottle, is a
beverage "to serve to your
enemies," and Mystic Seaport
Spruce Beer, at $1.65, is the
"closest you'll ever get to drinking
a tree," he says.

The king does not drink the hot
ginger ale often, but he is
proud to have it on the shelf,
along with its eclectic brethren.

"I love everything in this store,"
he says. "I could pour you a
spearmint soda right now that would
make your hair stand on
end."

http://news.excite.com:80/news/uw/010222/university-327

A guide to drinking alcohol in Utah

By Jeremy Asay Daily Utah Chronicle U. Utah

February 22, 2001 (U-WIRE) SALT LAKE CITY -- This guide to drinking in Utah
is for those of you out-of-towners who are not yet associated with the alcohol
laws in Salt Lake City.

Glossary:

Tavern: Any 21-and-older establishment where beer is the main menu item and
alcohol percentages do not exceed 3.2 percent.

Private Club: A full bar serving many different strengths of alcohol. Any bar
serving beverages over 3.2 percent alcohol is required by law to be a private
club. A private club is for adults (21 and over) and requires membership.

Sponsor: If you are not a member of a private club, you must be sponsored by a
member or else you cannot join in the festivities. (Hint: Most bars don't mind
if you ask a stranger to sponsor you-sometimes, they'll even ask for you.)

Side Car: Utah doesn't have the free pour. Each shot of hard alcohol, served in
Utah, is required by law to be no more than one fluid ounce. If you want a
double, the bartender cannot, by law, give it to you. But you can ask for a
side car. A side car is a single shot served along side your mixed drink (often
with the unspoken intention of adding it to your drink).

Certain restaurants around town are half restaurant, half private club. The
restaurant (all ages) serves beer to adults. But if you cross the line, you'd
better have your ID ready because it's a private club on the other side. The
line is there so people can enjoy mixed drinks with their fine food and still
be accompanied by their children.

When at a private club, your money is best spent on beer. Even though its only
3.2 percent, it is the most alcohol for the buck. Shots are disgustingly
expensive and mixed drinks are worse -- not to say the beer is a good price,
but it is your most economic choice.

The Local Word:

RED sat down with Greg Arata, the proprietor of Juniors Tavern, one afternoon
to talk alcohol.

RED: Have you noticed a liberalization of the alcohol laws over the last few
years?

Arata: Things were just different. In the '60s, '70s and '80s-the Democrats
controlled the Legislature. Back then, people had different attitudes about
drinking; they weren't as closed-minded about it. I mean, there were a lot of
bars in Provo -- of course, the cops would sit outside waiting for people to
come out drunk. [The Church of Jesus Christ of Latter-day Saints] didn't have
as much pull in the Legislature as they do today.

RED: Why is the church so adamantly opposed to drinking alcohol?

Arata: The church, on certain issues, and liquor's one of them, would never
agree to anything that would appear to be encouraging more consumption -- i.e.
dropping the private club cards, pulling something out of the liquor store and
putting it in the grocery store. That would be sending the wrong message to
society. They don't want to admit it, but they like things to beinaccessible,
more difficult.

RED: Is Utah the only state with such strict liquor laws?

Arata: There's only three states left that have 3.2 beers: Kansas, South
Carolina and Utah. Every state has some quirky alcohol laws though -- some
counties are dry. In Pennsylvania, you have to go to the distribution houses
and buy it by the case. You can't buy anything at the grocery stores.

RED: Do you see the liquor laws getting more lenient in the future?

Arata: I don't see things changing. The Legislature is controlled by
Republicans, or all the Mormons -- they don't like to vote on anything
involving liquor, even though a lot of them agree that things need to be
changed. To come out on the forefront and say, "Yeah, I'm for this," it's
political suicide for them.

http://news.excite.com/news/r/010226/11/odd-austria-dc

Male Women's Minister Sets Up Men's Dept

February 26, 2001 VIENNA (Reuters) - The Austrian women's affairs minister -- a
man -- came under fire from women Monday for establishing a men's department
in his ministry. Herbert Haupt, a veterinary surgeon by profession and a member
of the far-right Freedom Party, said his motivation for the move was that men
were being exposed to more and more discrimination.

Opposition politicians said Haupt was insulting the nation's women and
pursuing cynical policies.

Greens member of parliament Madeleine Petrovic slammed Haupt's
"chauvinistic whinging" which had "absolutely nothing to do with reality" given
that women were paid about a third less than men.

Martina Ludwig of the opposition Social Democrats said Haupt had let down
women severely. "But instead of balancing out his deficits, he chooses to swap
women's affairs for male affairs," she added.

Haupt's new department will work together with organizations and advice
centers for men and will produce studies on weighty issues for men. He became
Austria's first male women's minister last autumn when the center-right
coalition government merged the separate Women's Ministry into the Social
Affairs Ministry.

[J2jurado]

Heineken net seen up 17 percent

AMSTERDAM, Feb 27 (Reuters) - Dutch brewer Heineken NV is expected to report a
17-percent rise in profits on Thursday, boosted by strong results from its
Spanish and U.S. activities.

Heineken's 2000 net profit should be between 597 million and 608 million euros,
with an average forecast of 603 million euros ($554 million), compared with 516
million euros in 1999, according to a Reuters survey of 10 analysts.

Heineken said in September profits should be up 15 percent.

Both sales and earnings have been boosted by the consolidation of Spain's
Cruzcampo, which Heineken acquired during 1999, and strong sales growth in the
United States, an important export market for the Heineken brand, analysts
said. The brewer will also benefit from the strong U.S. dollar.

"Heineken is lucky as it produces beer in guilders, but it sells in dollars,"
said ING Barings analyst Gerard Rijk.

However, sales growth may have weakened due to a relatively cold and wet
summer, especially in Europe.

"Volume growth of four percent in the first half will not have continued in the
second half," ING Barings' Rijk said, forecasting full year sales volume growth
of some 2.5 percent.

Shares in Heineken reflect these figures, climbing 33 percent in 2000. The
broader Eurotop 300 beverages index rose 30 percent over the same period. But
in the year to date, Heineken stock is down 7.9 percent at 59.35 euros.

Analysts said they are now focusing on Heineken's plans in Germany and South
America.

Last week, Heineken made its first major foray into Germany, banking on a
consolidation in the fragmented industry there. It launched a joint venture
with Bayerische BrauHolding AG, a member of Schoerghuber Corporate Group.

Analysts are also curious if Heineken is in talks to increase its 14 percent
interest in Brazilian beer company Kaiser. Heineken said in September it was
interested in raising its stake, but added that no opportunity had yet arisen.

Analysts expect no news about Heineken's possible interest in bidding for the
brewing activities of Bass after British competition authorities overturned
Belgian beer giant Interbrew's purchase of Bass Beer Brewers.

A number say an acquisition would create limited synergies for Heineken. The
Dutch brewer itself has simply said it is keeping its options open.
DATE-COMPANY---PERIOD/PROFIT-----CONSENSUS--RANGE-------PVS---NO 01/3 Heineken
FY/00 Net pft 603 597/608 516.4 9 01/3 Heineken FY/00 EPS eur
1.93 1.90/1.95 1.65 10

FORECASTS CONTRIBUTED BY: ABN AMRO, CAI Cheuvreux, Delta Lloyd, Friesland Bank
Securities, ING Barings, NIB Capital, Rabo Securities, SNS Securities, Theodoor
Gilissen, Amsterdams Effectenkantoor.

Mexico GModelo Q4 2000 net sales up 9.9 pct

MEXICO CITY, Feb 27 (Reuters) - Mexican beer maker Grupo Modelo SA de CV said
on Tuesday its fourth quarter 2000 net sales rose 9.9 percent to 7.159 billion
pesos compared with a year ago.

The company also reported operating profit of 1.645 billion pesos in the fourth
quarter but did not give a comparative figure.

Egypt's Al-Ahram Beverages Buys Orascom's Gouna Beverage Unit

Cairo, Feb. 27 (Bloomberg) -- Al-Ahram Beverages Co. SAE., Egypt's biggest
beverages maker, bought the El Gouna Beverages Co. unit of Orascom Projects and
Touristic Development, giving it a virtual monopoly over locally produced
alcoholic beverages. Al-Ahram paid 215 million Egyptian pounds ($56 million)
plus 40 million pounds in assumed debt in a transaction signed today, said
Samih Sawiris, OPTD's chief executive.

El Gouna produces an annual 80,000 hectoliters of beer, under license from
Germany's Lowenbrau, and 1.5 million bottles of wine at a plant on the Red Sea
coast. It also owns a distillery in Alexandria. An expansion of the brewery,
due to be finished at the end of April, will boost output to 140,000
hectoliters, Sawiris said.

OPTD shares fell 4.6 percent today to 8.51 pounds, while Al- Ahram Beverages
was unchanged at 47.50 pounds. The sale was announced after the close of trade.

OPTD, which will merge soon with Orascom Hotel Holdings SAE, has been seeking
funds to help finance construction of hotels on the Red Sea coast.

Mexico Femsa says to invest $502 mln in 2001

MEXICO CITY, Feb 27 (Reuters) - Mexican beverage conglomerate Fomento Economico
Mexicano SA de CV <FEMSAUBD.MX> <<A HREF="aol://4785:FMX">FMX.N</A>> said on
Tuesday it would invest $502 million in 2001.

The most important growth would be in its beer business, which will see
investment of $355 million in 2001, compared with $280 million invested in
2000, Federico Reyes, Femsa's director of planning and finance, told a news
conference.

The company would invest $90 million in its Coca-Cola Femsa division this year,
he said, although did not give a comparative figure.

In its retail division, which includes the convenience stores Oxxo, the company
will invest $37 million. Reyes said Femsa aimed to open between 200 and 250
more Oxxo stores this year, equivalent to between 14 and 17 percent growth in
sales' floor.

Femsa will invest $20 million in maintaining and modernizing its packaging
division, Reyes added.

Mexico's Femsa 4th-Qtr Profit Falls 8% on Lower Sales of Beer

Monterrey, Mexico, Feb. 27 (Bloomberg)-- Fomento Economico Mexicano SA,
Mexico's largest beverage company, said fourth- quarter operating profit fell
8.1 percent as beer sales plunged because of new distribution tactics and cold
weather.

The company, known as Femsa, reported fourth-quarter operating profit of 1.77
billion pesos ($183 million), down from 1.93 billion pesos for the year-earlier
period. That compares with 1.92 billion pesos forecast by analysts in a
Bloomberg News survey.

Operating income was hurt by a 12 percent fall in domestic beer sales by volume
as the company cracked down on payments from third-party distributors and small
retailers, causing them to cut inventories. Beer sales were also hurt by
unusually cold weather during the quarter in northern Mexico where Femsa has a
strong market position.

Operating income at the beer unit fell 24 percent to 650 million pesos.

The company's Coca-Cola unit reported a 14 percent rise in soft-drink sales by
volume in Mexico on the back of booming consumer spending in the quarter.
Operating income at the unit rose 18 percent to 878 million pesos.

Femsa's sales were 11.8 billion pesos, a 5.3 percent rise from 11.21 billion
pesos for the same quarter a year ago. Analysts had estimated sales of 11.98
billion pesos.

Operating cash flow fell by less than 1 percent to 2.76 billion pesos, down
from 2.78 billion pesos for the year-earlier quarter. Analysts predicted
operating cash flow -- or earnings before interest, taxes, amortization and
depreciation -- of 2.78 billion pesos.

Net income rose 17 percent to 929 million pesos, or 0.88 pesos per Femsa's UBD
series share. Investors focus more on Mexican companies' operating profit
because it strips out fluctuations caused by inflation and the exchange rate.

FEMSA Reports Fourth Quarter 2000 and Twelve Months Ended December 31, 2000
Results

MONTERREY, Mexico--(BUSINESS WIRE)--Feb. 27, 2001--Fomento Economico Mexicano,
S.A. de C.V. and Subsidiaries ("FEMSA" or the "Company") (NYSE:<A
HREF="aol://4785:FMX">FMX</A>) (BMV:FEMSA UBD) (BMV:FEMSA UB), Latin America's
largest beverage company, today reported annual consolidated net sales of Ps.
45.343 billion, an increase of 9.6%, and operating income of Ps. 7.093 billion,
an increase of 9.9%, both with respect to full year 1999.

Therefore, the Company's operating margin for 2000 remained stable at 15.6% of
total revenues compared that achieved in 1999. The Company's operating
performance for 2000 reflects lackluster results in the beer division which
were compensated by outstanding results in the soft drinks division.

For the fourth quarter of 2000, the Company recorded consolidated net sales of
Ps. 11.8 billion, an increase of 5.3% and consolidated operating income of Ps.
1.773 billion, a decrease of 8.1% both relative to the fourth quarter of 1999.
Lackluster consolidated revenue growth in the fourth quarter reflects a
significant decline in domestic beer sales volume in the fourth quarter of
2000.

Such decline is attributable to the simultaneous occurrence of several events
which took place at the end of the year, namely, (i) the absence of inventory
loading by FEMSA Cerveza's clients during the last two weeks of December, (ii)
recently instituted commercial practices and (iii) extremely bad weather
conditions in certain stronghold regions of FEMSA Cerveza which affected beer
sales. The decline in beer volume impacted demand for packaging products and
contributed to a decrease of 9.8% recorded in FEMSA Empaques net sales.

Coca-Cola FEMSA on the other hand, recorded a strong performance in the fourth
quarter in Mexico, which more than compensated the weak performance of the
Argentine operations resulting from an extremely difficult economic and
competitive environment.

Finally, FEMSA Comercio also contributed to the Company's top line growth by
opening 115 new sites during the fourth quarter and achieving same store sales
growth of 5.3%.

Jose Antonio Fernandez, chief executive officer of the Company, stated,
"Notwithstanding the challenges faced by the Company this crucial first year of
transition, we managed to sustain the operating profitability levels achieved
in 1999, generate over U.S.$1 billion dollars in gross cash flow, de-lever the
balance sheet by U.S.$48.6 million to U.S.$454 million in net debt and
implement a thorough change in the commercial and distribution practices of the
beer operations.

"We strongly believe that the organization has successfully undergone a painful
but necessary transition in 2000, laying the grounds for an increasingly more
dynamic, innovative, efficient and commercially driven organization."

Net majority income increased by 17.0% to Ps. 929 million for the fourth
quarter of 2000, and decreased by 20.3% to 2.535 billion for the full year
2000. Earnings per FEMSA UBD or UB Unit for the fourth quarter of 2000 amounted
to Ps. 0.875.

Arroyo Says Government Can't Oust San Miguel Head, Paper Says

(Philippine Star, 2/28/01 p.21)

Manila, Feb. 28 (Bloomberg) -- Philippine President Gloria Macapagal Arroyo
said the government does not have enough shares in San Miguel Corp. to oust the
chairman of the nation's biggest brewer, the Philippine Star reported.

``We do not have enough shares to replace (Eduardo) Cojuangco as board
chairman,'' the Star quoted Arroyo as saying in an interview with reporters.

Arroyo said that even if the government was able to vote its 27 percent stake
in the food and beverage company, that would not be enough to dislodge
Cojuangco, an ally of ousted President Joseph Estrada, the Star said.

The government seized 47 percent of San Miguel in 1986 on suspicion the shares
were bought using ill-gotten wealth of former dictator Ferdinand Marcos and his
allies, particularly Cojuangco. It can vote only a 27 percent stake in the
company as the courts allow Cojuangco to vote the other 20 percent.

Southcorp and Rosemount Create Largest Premium Branded Wine Company

MELBOURNE, Australia--(BUSINESS WIRE)--Feb. 26, 2001--Southcorp Limited
("Southcorp") today announced the formation of the world's largest premium
branded wine company through a merger with Rosemount Estates ("Rosemount"),
Australia's largest family-owned winery. The combination of the two businesses
followed Southcorp acquiring all the shares in Rosemount Estates for $A1.4
billion plus debt of around $A90 million. This will be funded by the issue of
94.3 million shares at $5.50 a share and a cash payment of $881 million.

This combination will create one of the largest wine companies in the world,
and the largest premium wine company.

Southcorp Wines will now produce more than 10 million cases of premium wines
and forecast revenue of more than $A1.1 billion per annum.

Southcorp's Chairman, Mr. Rick Allert, said "This is a company transforming
transaction for Southcorp in its progress towards becoming the leading global
branded wine company; with over 75% of our future earnings now coming from
wine.

"The combination of Rosemount with Penfolds and Lindemans brings together three
of the world's premier global wine brands and is consistent with our strategy
of focussing on growing our portfolio of core brands.

"Rosemount is an excellent strategic fit with Southcorp and also delivers
significant cost savings and synergies through the consolidation of the two
businesses. In particular, we anticipate benefits from the combination of sales
and distribution, production efficiencies, improved purchasing power and
reduced administration costs. We anticipate that the transaction will be cash
EPS positive from 2002 onwards.

"We welcome the ongoing involvement of the owners of Rosemount, the Oatley
family who have shown their commitment to the Southcorp Group by accepting
equity as part of the consideration and our invitation to immediately nominate
two family members to the Board of Directors." The new Board members will be
the current Chairman of Rosemount, Mr. A. G. (Sandy) Oatley and the current
Rosemount Chief Executive Officer and Deputy Chairman, Mr. Keith Lambert.
Rosemount's Founder, Mr. Robert Oatley will become an adviser to the Board
prior to being put forward for election as a Director at the next Southcorp
Annual General Meeting. When elected to the Board it is the Directors intention
to appoint Mr. Oatley as Deputy Chairman.

The Oatley family have entered a shareholders' agreement under which they will
commit to retain at least 10% of Southcorp's issued shares for three years, or
in the event they choose to acquire more shares, not increase above 19.9% for
two years.

"Rosemount has arguably recorded the highest volume and profit growth, highest
margins and highest return on equity of all premium wine companies in the
world. Keith Lambert has accepted our invitation to head the combined wine
group and will lead a world-class management team."

Rosemount founder, Mr. Robert Oatley said: "The creation of this uniquely
Australian global brand portfolio will benefit not only all Southcorp
shareholders but will also continue to keep the world's eyes focused on the
Australian wine industry.

"The combined business will bring out the best from both organisations," he
said. "The proven track record and strength of both the Rosemount brand and our
management team when combined with Southcorp's management team and world class
brands will create a wine producer which will boost our competitiveness in the
international marketplace as well as increasing our reach and markets in
Australia."

Southcorp's Chief Executive Officer, Mr. Tom Park commented, "Rosemount is a
terrific brand and a terrific company and this transaction is consistent with
our desire to create global growth through the development and support of core
brands. Our Australian heritage and global reach provide great opportunities to
accelerate our relationships with distributors, the trade and consumers in more
than 80 countries around the world."

"When the opportunity arose to pursue this transaction, we were delighted.
Rosemount is one of the jewels in the world wine industry and the ability to
complete this transaction on terms advantageous to both our shareholders was an
opportunity to accelerate our global branded vision with what we believe is the
best global partner in the industry."

Mr. Park said the expanded Southcorp Wines will:

-- Produce more than 10 million cases of premium branded wine

-- Generate annual revenues in excess of A$1.1 billion per annum

-- Contribute more than 75% of the group's future earnings

-- Will contribute to Southcorp Limited having a market

capitalisation of around of A$4 billion

-- Have more than 7,500 hectares under production

-- Export to more than 80 countries

Light Green Advisors Combines BUD, Ford and DOW ... In a New 'Green' Investment

Environmental Leadership Trust Invests in Industries Most 'Social' Funds
Shun; Non-Traditional Picks Lift Environmental Investors in 'Value Market'

SEATTLE, Feb. 27 /PRNewswire/ -- What are Budweiser, Ford, Dow Chemical, and
Enron doing in a "green" investment fund? How can companies that make beer,
fossil fuel powered cars, toxic chemicals, and carbon fuels be considered
"environmentally responsible?" These and other non-traditional stock choices
can be found in the Environmental Leadership Trust(tm) (ELT) and the
Eco*Index(tm), both embodying Light Green Advisors' unique environmental
investing approach to identify companies with successful "pollution prevention"
programs and above average track records.

Most "socially responsible" investment (SRI) mutual funds shun investments in
polluting manufacturing and natural resource companies. By contrast, Light
Green Advisors, a Seattle-based investment adviser that created the ELT and
Eco*Index, emphasizes a U.S. Environmental Protection Agency (EPA) management
strategy encouraging the adoption of "pollution prevention" by top
manufacturing and natural resource companies. Under this new approach,
environmental organizations like the Pacific Northwest Pollution Prevention
Resource Center seek to support efforts by companies in these industries to
prevent pollution at the source through waste minimization, spill prevention,
and other approaches.

"Why shouldn't socially and environmentally responsible investors support
companies that are doing the right thing?" asks LGA Co-founder Jon Naimon.
"These programs are progressively reducing society's environmental burden and
contributing to the corporate bottom line at the same time." Naimon adds,
"There's no reason why environmentally responsible investors should be limited
to the 'growth-heavy' investment style of many SRI funds."

Investors who followed LGA's unconventional new approach to "green" investing
fared quite well in 2000, which was a difficult year for many SR mutual funds.
From its October 26, 1999 inception through the end of 2000, the ELT generated
a 10.92 percent return: 7.42 percent above the S&P 500. For calendar year 2000,
investors in LGA's 80-stock Eco*Index(tm) S&P 100 portfolio obtained returns
4.63 percent above the S&P 500.(1)

HOW LGA IS SHAKING UP "GREEN" INVESTING

LGA believes that companies with the lowest exposure to environmental costs
have a distinct competitive advantage over their industry peers. In order to
make it into the Environmental Leadership Trust(tm) or Eco*Index(tm), companies
must pass a screening process that takes into consideration industry trends in
environmental emissions of toxic material, waste generation, spillage frequency
of hazardous materials and environmental regulatory penalties.(2) LGA makes
stock selections using a proprietary scoring model that integrates this
environmental information with financial information. LGA president Jon Naimon
maintains, "The easiest way for investors to benefit from corporate
environmental progress is to invest in all of the S&P 500(tm) industry
sectors-even heavy industry value stocks."

What does this mean in practical terms for green investors? A partial list of
ELT's holdings is revealing:

* Dow Chemical (DOW) - DOW manufactures and sells chemicals, plastic
materials, agricultural and environmental products and services. Dow products
include: adhesive, sealants, fabricated products, metals, and other specialty
products. Many SRI funds have shunned Dow for decades as a pariah. LGA
selected Dow for the Eco*Index(tm) based upon a comparative analysis of its
performance in relation to other chemicals companies. Dow Chemical is a leader
in this industry in terms of its consistent environmental compliance, its
success in spill prevention, waste reduction and comparatively low level of
clean-up responsibilities. Dow's waste reduction always pays (WRAP) program,
initiated over a decade ago, provided a model for many other chemical
companies that now also recognize that it pays to reduce waste through
pollution prevention before it occurs -- rather than simply manage the
residuals at cost. Dow's program has also served as a model for companies in
other industries and even the US Environmental Protection

Agency

* Ford (F) - Ford Motor Company is one of the world's largest producers of
cars and trucks. The company and its subsidiaries also engage in other
businesses, such as financing and renting vehicles and equipment. Ford has
shaken up the auto industry a few times: once by advocating higher gasoline
taxes to encourage higher levels of fuel efficiency, and more recently through
chairman Bill Ford's support for environmental groups such as Conservation
International. LGA selected Ford for the Eco*Index(tm) and Environmental
Leadership Trust(tm) based on its analysis of Ford's progress in waste
minimization, toxic emission reductions, spill prevention, compliance with
environmental laws and its success in reducing corporate environmental risks in
relation to its industry.

* Anheuser (BUD) - Anheuser-Busch Companies, Inc. is one of the world's largest
producers of beer, which is distributed around the world in a ariety of
containers primarily under the brand names, including Killarney, Budweiser and
Modello. In addition, the company operates other businesses such as packaging
and entertainment (Sea World and other attractions). BUD operates one of the
US's largest container recycling programs. LGA selected Anheuser Busch for
the Eco*Index(tm) and Environmental Leadership Trust(tm) based upon an analysis
of its historical success in preventing spills, minimizing wastes, and meeting
environmental compliance requirements, and has proclaimed its breweries
nuclear-free zones.. While few companies in the beverage business face
constraints due to climate change, Anheuser has participated in a pioneering
carbon sequestration program in Central America that promotes rainforest
conservation activities to offset greenhouse gas emissions in the US.

VISIT LIGHT GREEN ADVISORS ON THE WEB AT: http://www.lightgreen.com

ABOUT LIGHT GREEN ADVISORS

Light Green Advisors, Inc. (LGA) is a Seattle-based investment advisor
specializing in the construction of environmentally sound and financially
conservative investment portfolios. LGA's mission is to offer investment
opportunities to mainstream, environmentally aware investors that take
advantage of the corporate environmental leadership. LGA clients include
progressive foundations, corporations, pension plans and individuals in North
America and Europe.

The Eco*Index(tm) is an index of 320 stocks with average or better than average
performance in every Standard & Poors industry group except tobacco products.
Eco*Index(tm) products are available to individual separate account investors
through Smith Barney financial consultants. Parametric Portfolio Associates, a
PIMCO subsidiary, serves as the subadvisor to LGA for Eco*Index(tm) and
Eco*Index(tm) S&P 100 portfolio accounts.

The Environmental Leadership Trust(tm) (ELT) is comprised of 30 Standard &
Poors (S&P) 500 stocks in most major Standard & Poors industry groups. Both the
Eco*Index and Environmental Leadership Trust(tm) differs from conventional
"SRI" mutual funds in their focus on firms in industries that face
environmental challenges and that are taking steps to manage those risks
responsibly.

Wine With Dinner Legislation Introduced; Popular Proposal Will Authorize Wine
Sales in Grocery Stores

ST. PAUL, Minn., Feb. 27 /PRNewswire/ -- Grocery shoppers in the Twin Cities
just moved one step closer to having the increased convenience of purchasing
wine with their dinner items. The popular "Wine With Dinner" legislation was
introduced at the State Capitol today. The Senate bill number is SF 1107; the
House bill number is HF 1205.

Sponsored by Sen. Linda Scheid (DFL-Brooklyn Park) and Rep. Barbara Sykora
(R-Excelsior), the bill will change existing law to allow wine sales at grocery
stores. Grocery stores will have to follow the same laws regulating the sale
of wine as liquor stores. Regular beer, liquor and fortified (high alcohol)
wine are not allowed under this bill.

"This bill is long overdue," said Sen. Scheid. "Shoppers in 33 other states
can make one stop and buy their dinner items and a bottle of wine. This bill
will meet consumer demand and provide for the responsible sale of wine in
grocery stores."

"In addition to the convenience and efficiency of one-stop shopping, wine in
grocery stores will also add market competition to wine sales," said Rep.
Sykora. "In many cities there remains an outdated government monopoly on the
sale of wine -- a consumer item people buy every day. I believe that more
competition and more choice will be good for consumers."

Grocers will abide by all laws and penalties that currently regulate wine
sales. In addition, grocers will follow a self-imposed 10-point Code of
Conduct that goes beyond current laws and regulations. Further still, the
legislative proposal introduced includes tough provisions that mandate all
grocery stores selling wine will:

-- Card all customers wishing to purchase wine

-- Mandate compliance checks by local law enforcement

-- Have a written theft prevention plan

-- Provide mandatory training of employees and supervisors

Taken together, these actions represent the most responsible proposal for
grocery store wine sales in the nation.

"Our store managers have been impressed with the deep and broad level of
support that exists for wine sales in grocery stores," said Nancy Christensen,
executive director of the Minnesota Grocers Association. "Grocers listen and
react to the demands of their customers and aim to provide services that
shoppers want, like deli counters, on-site banks and pharmacies and now wine
with dinner. We encourage supporters to visit our web site,
http://www.WineWithDinner.net , use the search tool to find their legislator
and send an e-mail asking for their vote. It makes sense and it's about time."

About the Minnesota Grocers Association (MGA)

The MGA is a non-profit trade association founded to advance the common
interests of all those involved in the food retail industry -- supermarkets,
superstores, convenience stores, food wholesalers, and food manufacturers and
brokers. More than 300 businesses representing 1,200 retail food stores as
well as nearly 150 related businesses representing wholesalers, food
manufacturers and brokers are members of the MGA.

Strictly Islamic Malaysian state pushes tourism

By Patrick Chalmers

KOTA BARU, Malaysia, Feb 28 (Reuters) - In an industry famed for its
silver-tongued descriptions of holiday destinations, Malaysian tourism officer
Rusli Yaacub is refreshingly blunt.

Sitting in a chaotic office surrounded by scattered papers and unhung pictures,
Rusli's job is to draw tourists to Kelantan, one of Malaysia's poorest states
-- and one without the palm-fringed beaches most foreign tourists want.

It also strictly observes Islamic laws banning alcohol and requiring women to
wear more than the backpacker's uniform of cut-off shorts and sleeveless tops.

Rusli has no illusions about the foreigners' agenda when they arrive at the
state capital Kota Baru's tourist information centre.

"Most of them come to Kelantan in transit. They may stay a night, even two
nights here. For them it is not their final destination," he said.

While Kota Baru's smarter hotels do not advertise alcohol, non-Muslim members
of staff serve it on request with meals or deliver it to rooms. Some
Chinese-run restaurants around town also sell beer.

Kelantan, which borders the exotic and raunchier Thailand on peninsular
Malaysia's northeastern coast, marks the political seat of Parti Islam
se-Malaysia (PAS), the strongly Islamic, Malay-based party that leads the
country's opposition alliance.

PAS and its allies won more than half the Malay votes at the 1999 general
election, milking voter dissatisfaction with Prime Minister Mahathir Mohamad's
ruling alliance and his sacking of popular former deputy and heir apparent
Anwar Ibrahim.

ISLAM IN ACTION

PAS wants Kelantan to become Malaysia's agricultural powerhouse, adding fruit
and vegetable cultivation to existing palm oil and rubber output and building a
deep sea port to encourage fishermen to land catches in the state.

But Rusli thinks tourism is a better bet. The attraction? Seeing Islam in
action.

"We concentrate on our culture, we try to develop our culture. We do not have
beaches like Terrenganu and Pahang," Rusli said in reference to more popular
east coast states.

"We should promote the way of life. Where women follow what men command.
Tourism is what you see with your eyes, we should promote and sell it. Our
culture is our product," he said.

Kelantan has plenty of culture to offer, ranging from kite factories, batik
fabric making and performances of Wayang Kulit puppet shadow plays to
traditional dance and music.

The state, dubbed "The corridor of Mecca," also boasts Masjid Kampung Laut,
said to be Malaysia's oldest mosque and built entirely of wood without the use
of nails.

And Rusli highlights the potential tourist draw of Kelantan's many religious
schools, scattered around the countryside, where students learn devotion to
Islam.

Tourism ministry figures recorded 10 million foreign visitors to Malaysia last
year, up from eight million in 1999.

Rusli said 85 percent of last year's 3.4 million visitors to Kelantan were
Malaysian, with nearly two thirds of the remainder Thais on short shopping
trips from across the border.

Sigi Kaspar, a 30-year-old sports instructor from Austria travelling through
Kelantan, thought the idea of selling Islam to to tourists could work.

"It's probably much harder to sell culture than to sell beaches. I think it
would be a really interesting thing to do -- but maybe another time," he said.

He was in a hurry to get to Thailand.