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BUSINESS Monday 12 noveMber 2018
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Pabst says MillerCoors is trying to put it out of business

By IVAN MORENO said Pabst’s proposals to
Associated Press keep the Eden facility open
MILWAUKEE (AP) — Pabst “were commercially unrea-
Brewing Company and sonable” and that Pabst
MillerCoors are going to sought “a windfall through
trial, with hipster favor- litigation” instead of offer-
ite Pabst contending that ing to pay enough to keep
MillerCoors wants to put it a facility open. It also said
out of business by ending the facility’s closing was “to
a longstanding partner- ensure the longer-term sus-
ship through which it brews tainability” of MillerCoors
Pabst’s beers. because thousands of new
The case has high stakes brewers have entered the
for Pabst, whose lawyers market over the past de-
argue that the company’s cade.
very existence relies on the MillerCoors and Anheus-
partnership with Chicago- er-Busch, which have the
based MillerCoors, which biggest U.S. market share
produces, packages and at 24.8 percent and 41.6
ships nearly all its products, percent, respectively, have
which include Pabst Blue been losing business to
Ribbon, Old Milwaukee, smaller independent brew-
Natty Boh and Lone Star. In this photo taken on Thursday, Nov. 8, 2018, cases of Pabst Blue Ribbon and Coors Light are ers, imports, and wine and
MillerCoors, meanwhile, stacked next to each other in a Milwaukee liquor store. spirits in recent years, ac-
says it’s not obligated to Associated Press cording to the Brewers As-
continue brewing for Pabst show that it went as far as a solution if Pabst wants to formation to substantiate its sociation.
and that Pabst doesn’t hiring a consultant to “fig- extend the agreement but claim that it would no lon- “The beer market has shift-
want to pay enough to jus- ure out ways to get rid of MillerCoors lacks the ca- ger have the capacity to ed and beer lovers are
tify doing so. us.” MillerCoors has called pacity. continue brewing Pabst’s increasingly demanding
The trial in Milwaukee that a mischaracterization Pabst needs 4 to 4.5 million beers, and that it wouldn’t more variety, fuller-flavor,
County Circuit Court be- of the consultant’s work. barrels brewed annually consider leasing the Eden and local products from
gins Monday and is sched- The 1999 agreement be- and claims MillerCoors is facility and would only sell small and independent
uled through Nov. 30. tween MillerCoors and its only option. It is seeking it for an “astronomical” producers,” said Bart Wat-
Pabst’s attorneys have Pabst, which was founded more than $400 million in price. son, the Brewers Associa-
said in court documents in Milwaukee in 1844 but is damages and for MillerCo- Pabst says MillerCoors tion’s chief economist.
and hearings that Miller- now headquartered in Los ors to be ordered to honor wouldn’t agree to an ex- Overall U.S. beer sales have
Coors LLC is lying about its Angeles, expires in 2020 but its contract. tension unless Pabst paid declined, with shipments
brewing capacity to break provides for two possible During 2015 negotia- $45 per barrel — “a com- down from 213.1 million
away from Pabst and cap- five-year extensions. The tions about extending the mercially devastating, barrels in 2008 to 204.2 mil-
ture its share of the cheap companies dispute how contract, MillerCoors an- near-triple price increase” lion in 2017, according to
beer market by disrupt- the extensions should be nounced it would close its from what it pays now. At the Brewers Association.
ing Pabst’s ability to com- negotiated: MillerCoors ar- brewing facility in Eden, the March hearing, Paris Pabst depends on Miller-
pete. At a March hearing gues that it has sole discre- North Carolina, and that it said MillerCoors knew Pabst Coors because the only
in which MillerCoors tried to tion to determine whether eventually might have to couldn’t accept that pro- other U.S. brewer with ca-
have the lawsuit dismissed, it can continue brewing shutter another facility in posal “because it would pacity to make its products
Pabst attorney Adam Paris for Pabst, whereas Pabst Irwindale, California. Pabst have bankrupted us three is Anheuser-Busch, which
said “stunning documents” says the companies must contends that MillerCoors times over.” doesn’t do contract brew-
obtained from MillerCoors work “in good faith” to find refused to provide any in- In court filings, MillersCoors ing, Paris said. q

China’s annual shopping frenzy shatters records again

By BORG WONG and YAN- Singles Day, the clamor for mark, that number had in-
AN WANG deals and discounts was creased tenfold.q
Associated Press heralded with character-
SHANGHAI (AP) — Online istic fanfare by Chinese e-
shoppers spent more than commerce giant Alibaba,
$14 billion within the first which has turned an un-
two hours of China’s annu- official holiday for people
al buying frenzy on Sunday, without romantic partners
once again breaking re- into a yearly windfall for
cords as the consumer tra- digital retailers. A massive
dition enters its 10th year. screen at Alibaba’s gala in
The spending binge breaks Shanghai showed the surg-
from gloomy forecasts ing sales numbers in real
about the world’s second- time: At 2 minutes and 5
largest economy, which seconds after midnight, 10
is struggling with a tariff A board makes a milestone of sales passing the RMB10 billion billion yuan ($1.43 billion) in
or US$1.4 billion mark minutes into the start of Alibaba’s 11.11
war with the U.S., a stock Global Shopping Festival held in Shanghai, China, early Sunday, purchases had been made
market slump and slowing Nov. 11, 2018. on Alibaba’s platforms. By
overall growth. Known as Associated Press the 1 hour and 47 minute