11 June, 2005

Canada: Labatt attacked Alberta-based Minhas Creek

Labatt attacked on June 7 Alberta-based Minhas Creek for selling its Wisconsin-brewed discount beer under a Canadian label. The Belgium-owned brewer placed full-page ads in The Winnipeg Sun and other Manitoba newspapers scolding Minhas, a Calgary independent, for putting a Maple Leaf on its cans.

"Why are they posing as a domestic brew? Must be they think we Canadians are easily fooled," said the ad, described as a message from Labatt Lucky Lager -- a "good, honest, Canadian beer." Lucky is Labatt's competitor to Minhas, which entered the Manitoba market six months ago and has stirred up controversy ever since.

In March the Manitoba Liquor Commission said it was losing money in the Minhas-sparked discount beer war and wanted to raise the price it charged brewers to recoup its tax revenue. That idea was canned by the minister responsible.

Minhas Brewing president Manjit Minhas laughed off Labatt's ad. "Obviously somebody's a little scared," she said from Calgary. "They must be being pressured by their executives and shareholders to do something about it and this is what they came up with."

Minhas suggested she had captured 10% of the local market and, in response, had lowered her price another nickel to $5.52 a six-pack.

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