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Gold/Mining/Energy : ALE/TSE Sleemans -- Ignore unavailable to you. Want to Upgrade?

To: AGORA who wrote (46)	1/13/1998 10:09:00 PM
From: Richard Schwindt	Read Replies (1) \| Respond to of 272

It will be interesting to explore the implications for distribution.What do UC's distribution networks look like? Sleemans has its "in" in Ontario, BC and increasingly Quebec; what will the acquistion of UC add to that. I wish they had Big Rock (I like the beer better and there are all those western drinkers) but I there is wisdom to spreading across the market. You can't buy cheap Canadian wine these days it seems without a cut going to Vincor.Overall,I think this is a great move. I have a Woody's Wild Ale in front of me. It makes me think of Sleemans dark (alas Big Rock Warthog is better still) but it also raises the question of redundant brands. Will there be any eliminated? I have always felt that holding ALE was a smart move by almost any criteria. I wish I had more.I notice it dropped a bit today. I'm surprised but I feel pretty good about what I have.

To: AGORA who wrote (46)	1/13/1998 11:32:00 PM
From: paul s.	Read Replies (2) \| Respond to of 272

Thanks for the invite from the other thread... Some points to ponder/debate: -I hear that ALE will be at capacity (brewhouse) with this deal. That's good for profits but poor for growth. Nobody left to buy in Ontario for extra capacity in the future. -I am also sure that once the news of this deal gets out, and the changes in flavour (to the better) are noticed by UCB faithfuls, they will tend to begin the switch to other brands. There is no way I can see that the market share of UCB now will be maintained for those brands. Just look back at the Molson/Carling deal, and at the market share 2 years later. Carling was also dying a slow death at that time. Difficult to save a declining label. -I'm also not sure how long Sleeman's can continue to use the marketing term "craft brewed" to help distinguish their beer. Getting too big. Sooner or later they will just become one of he big boys. Not necessarily bad for shareholders, but another negative on momentum in a declining market. -If people are waiting for a blockbuster here...better get comfortable -also nothing from stopping someone from re-opening the UCB facility and re-join the competition Please note...I am not a shareholder of either and haven't been for 2 years, but like to stay up to date. I am not anti-Sleeman's, but just don't see how this deal is good. has anyone done an analysis on purchase price vs market share/sales? Will be very interesting to see how this one shakes out. good luck paul