Newspaper Page Text
DeGuire Tells Stockholders
Piabst Expects Increased
Sales Despite Show Start
Frank C. DeGuire,
president and chief
executive officer of the
Pabst Brewing Company,
said that first quarter
sales for 1978 were
$156,812,000, or 3,354,000
barrels, down from
$172,334,000, or 3,823,000
barrels, for the same
quarter of 1978.
He told shareholders at
At Annual Meeting
Production Costs Up
Again , Pabst Reports
During the annual
meeting of Pabst
shareholders in Chicago
on April 11, Frank C.
DeGuire, president of the
brewing company said
the cost spiral continued
in 1978 regarding
packaging materials
including aluminum,
steel and glass bottles. He
also noted that labor,
energy, transportation
and marketing cost have
also increased
significantly.
Although Pabst had
instituted some price
increases for its products
during 1977, and has
made minor adjustments
this year, those increases
are restricted by com
petitive factors, ac
cording to DeGuire.
While Pabst always has
been operated on a lean
basis, DeGuire stated
that the brewery em
barked last year on long
term cost control
programs and is
beginning to see results.
DeGuire clarified the
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the annual meeting in
Chicago on April 11, that
sales for the first three
months of 1978 look un
favorable partly because
they are being compared
to the 1977 first quarter
when an inventory build
up program occurred.
In 1977, Pabst had three
major labor contracts to
negotiate and in the first
state of events relating to
the proposed tender offer
made by APL.
"To date, APL had not
made an offer to our
stockholders, It is only a
proposed offer. Because
APL proposes to issue
securities, that is
debentures or promissory
notes, in partial exchange
for Pabst stock, such
securities must be
registered with the
Securities and Exchange
Commission in
Washington, D.C., with
the State of Wisconsin
and other states which
have so-called 'BlueSky'
laws. That registration
process has not been
completed.
"A further hearing
before the Wisconsin
Commissioner of
Securities on the revised
proposed offer was held
last week on April 3 and 4.
Pabst offered additional
testimony concerning the
proposal; APL offered
none. The commissioner
ordered that all briefs be
five months of that year,
built up inventories with
its distributor
organization in an
ticipation of possible
strikes. During the
summer, the Pabst
Peoria Heights, Illinois,
brewery was on strike for
eleven weeks.
Despite first quarter
results, DeGuire
filed by April 27, and he
will issue a decision
sometime after that.
"The California Cor
porations Department
has refused registration
of the APL debentures;
and the States of Illinois,
Texas and Minnesota
have ordered hearings on
whether the debentures
should be registered in
those states."
DeGuire told
shareholders that Pabst
Brewing Company has
long had a policy against
bribes, kickbacks and
other such violations of
the law. It has hurt us in
marketplace but,
because of this, we are
not presently faced with
the problems of some
other brewers.
He concluded his
remarks by restating that
Pabst will sell more beer
in 1978 than last year,
notwithstanding "the
uncertainties of our
economy and competition
in the marketplace."
predicted increased sales
for 1978 on the strength of
two extremely significant
marketing moves made
by the brewing company.
The first major
development DeGuire
cited was Pabst's entry
into the light beer market
in the fall of 1977. Pabst
Extra Light Beer is the
nation's first
"...naturally brewed, half
the calories beer", he
said, adding that it is
rapidly gaining consumer
acceptance. He called the
introduction a success.
Pabst's second major
marketing thrust, cen
tering on the Pabst Blue
Ribbon brand, began in
late 1977, DeGuire stated.
The firm selected a new
advertising agency,
embarked on a new
advertising campaign
and is continuing to spend
increased dollars on
advertising.
Pabst distributors and
selling organization are
strongly behind the new
campaign. DeGuire also
said he is confident that
"as we move into the
spring and summer
selling season, we will see
increased sales as a
result of the major effort
behind the Pabst Blue
Ribbon brand.
"For the first time,
many markets in the
United States have two
separate campaigns
advertising Pabst name
products," he said. He
explained that "it will be
necessary to spend
marketing dollars and
generate ideas to ef
fectively compete. For
the near term, this will
have an impact on ear
nings."
Pabst's profits for the
first three months, ended
March 31, 1978, were
$2,271,000 or 26 cents per
share, compared to
\\ School
Lunch |l\
<' Menus By
( -
Mon,, Apr 24
Hamburger on Bun-
Catsup-Mustard
or Lunch Meat &
Cheese Sandwich
Onion Rings
French Fries
Garden Salad or Cole
Slaw
Applesauce-Cranberry
Crisp
Milk
Tues., Apr 25
Spaghetti w-Meat Sauce
or Barbecued Chicken
Field Peas w-Snaps
Tossed Green Salad
Cheese Biscuit or Roll
Fruit
Milk
Wed., Apr 26
Beef Vegetable Soup
or Turkey Pot Pie
Toasted Cheese Sandwich
Orange Jello
Stuffed Celery
Cookie or Cake
Milk
Thurs., Apr 27
Barbecue on Bun
or Bologna w-Cheese
Sandwich
Whole Kernel Corn
Cole Slaw w-Carrots
Dill Slice
Cinnamon Roll
or Strawberry Short
cake
Milk
FrL, Apr 28
Hot Dog
or Roast Beef Sandwich
French Fries
Baked Beans
Wonder Brownie
Sliced Peaches
Milk i
$6,862,000, or 80 cents per
share,for the first three
months of 1977.
Commenting further on
Pabst's current
strategies, DeGuire said
that he was pleased to
report that its super
premium brand, An
deker, is showing sub
stantial sales increases
this year, "albeit on a low
base".
Pabst will continue to
support Andeker on a
limited basis and looks
forward to obtaining an
ever-increasing share of
the super premium
market with this brand.
He cited Pabst's
continued strong
financial position which
enhances its ability to
compete in the beer
market. Pabst is not
Dividends
Declared
By Pabst
The Board of Directors
of the Pabst Brewing
Company declared a
quarterly dividend of 30
cents a share in Chicago
on April 11. The dividend
is payable May 26, to
stockholders of record at
the close of business Aprl I
21.
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All You Can Eat!
CATFISH
Includes:
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Includes: Fried Fillet of Fish, Fried Shrimp, Deviled
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HOUSTON HOME JOURNAL THURS., APR 20, 1978,
reached SSO million,
exclusive of capitalized
PAGE 2-B
leases, the highest total in
the company's history.