Chase Kimball
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Coffee. 1 sugar, 2 limes.
By Chase Kimball - July 13, 2012 | Tickers: KO, MNST, PEP, SBUX
You know what makes a nice, tart, ice cold lime-ade in the summer taste even better? Add coffee to it! At least that's what Starbucks (NASDAQ: SBUX) is trying to sell us with their line of "Refreshers." The drinks debuted in "made-by-barista" form on July 10, though your local Starbucks may have started the promotion early. I myself was thwarted upon trying to purchase a hibiscus refresher before the more »
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Asia's Love of Gambling
By Chase Kimball - July 13, 2012 | Tickers: LVS, MPEL, WYNN
I have to agree with Goldman's recent finger-wagging against the gaming industry pessimists. While Macau is slowing down, it is important to keep in mind that a "slow down" is a relative term. In June, Macau gaming revenue was expected to grow 15%. Instead it grew 12.2%. There was also a typhoon, a bit of a dud, but one that was hyped enough to keep tourists away. The more »
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Cantina Bell takes on Chipotle
By Chase Kimball - July 11, 2012 | Tickers: CMG, YUM
Us 20-something males are getting screwed again. First Burger King realized we are broke, living with our parents, and can't possibly save up enough to buy a Whopper, and now Yum's (NYSE: YUM) Taco Bell is getting in on the bashing. With the debut of their Cantina Bell menu, the Bell is straying away from their late-night-drunk-food mantra. Perhaps to do some clean-up from the recent "it's more »
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Innocents Abroad: Wynn vs. the FCPA
By Chase Kimball - July 8, 2012 | Tickers: LVS, WYNN |
I do not envy Steve Wynn. Well that's not true: I do, in every aspect, except having to do business with the Chinese government. He and any other Laowai ("foreigner" in Mandarin) has to deal with an incredibly complex web of back-scratching, face-saving, and outright bribery in order to get a deal done.
I remember a wine importer friend of mine from Shanghai (by way of New York) telling more »
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Does Constellation Understand Beer?
By Chase Kimball - July 8, 2012 | Tickers: BUD, STZ, DEO
Constellation (NYSE: STZ) is taking a big jump into the beer business with their recent $1.85 billion purchase of the other half of Crown Imports they didn't already own. This purchase, part of a pretty interesting transaction with AB InBev (NYSE: BUD), described in a previous article here, will give Constellation full control of the marketing of brands like Pacifico, Corona, Modelo, and Victoria. While AB InBev will more »
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BUD and STZ's 'Special Relationship'
By Chase Kimball - July 6, 2012 | Tickers: BUD, STZ
Well, it looks like the only option I didn't outline in my June 28th article is the one that AB InBev is going with. As part of their $20.1 billion acquisition of Grupo Modelo, AB InBev (NYSE: BUD) has helped negotiate the sale of Modelo's share in Crown Imports, the US importer of pretty much every popular Mexican beer (Corona, Modelo, Pacifico, Victoria). The sale to Constellation more »
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Fast Food, Booze, and the Future
By Chase Kimball - July 5, 2012 | Tickers: EAT, BKW, CMG, DRI, SBUX
Lately, there seems to be a lot of restaurants adding booze to their menus. Starbucks (NASDAQ: SBUX) recently expanded their wine and beer offerings to Chicago, adding to stores already in Georgia, California and Washington. The general idea is, "people like hanging out here during the day, but they leave as soon as happy hour rolls around, so let's fill them with booze and keep the money flowing," or more »
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Will Starbucks Commit to Tea?
By Chase Kimball - July 2, 2012 | Tickers: SBUX, TEA |
Starbucks (NASDAQ: SBUX) is making some confusing decisions lately. After re-designing their logo to stray away from being known specifically as a "coffee" company, they seem to be offloading their tea concept, Tazo, to a tea-only retail location. It seemed by re-designing the logo and promoting non-coffee items, Starbucks paved the way to seriously build out their other offerings (tea). But by planning to open a tea only store, they more »
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Where to put Natty, Busch, and Michelob?
By Chase Kimball - June 28, 2012 | Tickers: BUD, SAM, BREW, HEINY, TAP |
Although the rumors of AB InBev (NYSE: BUD) taking over Grupo Modelo are just that, rumors, the implications of such a transaction are causing visions of antitrust fairies to dance in our heads. By buying the other 50% of Modelo (they already own a 50% non-controlling stake), AB InBev will crack the 20% mark of the global beer market by volume. As of 2011, Modelo held 2.9% and AB more »
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The Soul of the King
By Chase Kimball - June 27, 2012 | Tickers: BKW, MCD, WEN
Burger King (NYSE: BKW) is back in the public eye after its recent reverse IPO. The new scrutiny will mean they will be held up in comparison to companies like McDonald's (NYSE: MCD) and Wendy's (NASDAQ: WEN), number one and number 2 in the US by sales, respectively. Both also don't carry the stigma of a "company in flux." One of the hallmarks of the QSR industry more »
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Burger King and Reverse Mergers
By Chase Kimball - June 27, 2012 | Tickers: BKW, LUV, LCC
Burger King (NYSE: BKW) is back on the big board in what had to be one of the quietest IPOs ever. The difference here is that their arrival onto the NYSE wasn't brought about by an IPO at all, but a "reverse IPO." There is no roadshow, no investor presentations, no excitement or hoopla.
The reverse IPO works like this:
1) Find a company that's already publicly traded more »
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Wanted: Marketing Head, Large Retail Chain
By Chase Kimball - June 21, 2012 | Tickers: JCP, TGT
Well, J.C. Penney's (NYSE: JCP) head of marketing is out of a job. It's no wonder really given that Michael Francis' job was to communicate what should be a fairly simple pricing strategy. The strategy itself, articulated by CEO Ron Johnson, is meant to simplify the traditional department store "final final final Labor Day BLOWOUT, and we really mean it this time, holdover" sale.
But in the more »
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The Store Within ... Target and Wal-Mart
By Chase Kimball - June 20, 2012 | Tickers: AAPL, TGT, WMT
The whole "store within a store" concept seems to be catching on. Although companies like Ralph Lauren and Fifth and Pacific have been doing it for years in department stores, the big boxes are giving it a go. Target (NYSE: TGT) and Wal-Mart (NYSE: WMT) are attempting to increase the value of their brands by working with other highly regarded brands and hopefully encouraging the consumer to think of multiple more »
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It's Last Call, and Molson Coors is Lonely
By Chase Kimball - June 20, 2012 | Tickers: TAP, SBMRY.PK |
Today, Molson Coors (NYSE: TAP) finalized their $3.5 Billion buyout of StarBev and officially created Molson Coors Central Europe. This acquisition brings aboard such recognizable brands as Apatinsko, Kamenitza, and Staropramen. Huh? I'd never heard of them either. Apparently, Starbev had $1 Billion in sales last year, mostly in its home countries of Czech Republic, Hungary, Bulgaria, Romania, Croatia, Serbia, and Montenegro. This would constitute (according to a more »
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The Boston Liquor Company?
By Chase Kimball - June 19, 2012 | Tickers: SAM, BREW, DEO, TAP
With yesterday's announcement that Boston Beer (NYSE: SAM) will be selling its beer to Berkshire Mountain Distillers for the purpose of turning them into whiskey, one cannot help but wonder: will SAM ever branch out beyond beer? They have slowly built out their Twisted Tea and Angry Cider brands, but these are still malt based and essentially beer. Berkshire Mountain's plan is to use Boston Lager and Cinder more »
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What Happens in Vegas...Goes to Macau
By Chase Kimball - June 18, 2012 | Tickers: LVS, MGM, WYNN
This is interesting. As of 2011, casino revenue in Macau was $34 Billion while Vegas was only $10 Billion. Our own capital of vice, the mecca of gambling here in the US, is being trounced. What's going on here? When you first step onto the strip in Las Vegas, you are swept up in a kind of insane energy. The crowds, signs, music, everything works together to shake your more »
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In China, Drinking is a Business Skill
By Chase Kimball - June 18, 2012 | Tickers: BEAM, DEO
One of the most memorable lines I heard from a local friend while I worked in Shanghai was "In China, drinking is a business skill." I was taken aback at the candor of this statement, given the general shyness among most of my colleagues. The more we talked, though, the more I understood the incredible importance of guanxi, basically translated as "connections." In China, just as in the West, connections more »
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The Wisdom of the Innkeeper
By Chase Kimball - June 17, 2012 | Tickers: MAR, HOT
Is Starwood (NYSE: HOT) missing something? Have they been taking their water at their desk and forgoing the water cooler altogether? That can really be the only explanation for their ignorance of Europe's imminent collapse and their stupidity in building a new hotel in the new epicenter of European dread: Spain.
The new Sheraton Madrid Mirasierra Hotel & Spa in Madrid, in partnership with Comercal Mirasierra, makes 17 hotels in more »
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Beer. The good kind.
By Chase Kimball - June 5, 2012 | Tickers: SAM, BREW
As a graduate of the University of Colorado, I have to admit I am pretty familiar with beer. I generally know the difference between an ale and a lager, but whenever I go back to Boulder for a visit I am astounded by the deep beer knowledge among the average twenty-something. This knowledge goes well beyond the most efficient shotgun method or the cheapest can. People in Boulder (and Colorado more »
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Sam, Jeremiah, and my Penchant for Girl Drinks
By Chase Kimball - June 3, 2012 | Tickers: SAM, DEO
For the past few days the heat here in Washington, DC has been stifling. Luckily it's cooled down a bit but on those days when I am reminded that DC was (is?) a festering swamp, nothing cuts through the thick, wet blanket of humidity like a cold rooftop drink. I don't mean chocolate milk. Something about the drying effect of alcohol provides the perfect antidote to the weather more »
