ManhattanBeer-PhoenixBeverageMerger

ImplicationsfortheIndustry,TeamstersLocal812andtheIBTBrewery&SoftDrinkConference.

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ProductsManhattanBeer

• Miller/CoorsProducts,HeinekenandInBev (RollingRock),GenesisBrewingCompany(Dundee's),BlueMoon,Killian's,Pete's,Rheingold,SamAdams,Saranac,SierraNevada,AMarcaBavaria,Bass,Beamish,Becks,Boddington Bohemia,Carib,Klausthaler,Corona,Dinkelacker,DosEquis,Franziskaner,Grolsch,Hoegarirden,JohnCourage,Kronenbourg,Labatt,Leffe,McEwans,Modelo Especial,Molson,MolsonXXX,Moosehead,NegraModello,NewCastle,Pacifico,Sol,Spaten,Staropramen,StellaArtois,Tecate,Tennents,Bartles &Jaymes,Boones,ChateauDiana,Mike'sHard,Seagram'sSmooth,Verdi,Zema,Evian,Sole,Voss,HardCore,Hornsby's,Magner’s andmanyotherwines,liquors,spiritsandcraftbeers.

PhoenixBeverage

Miller,Heineken,Peroni,Pilsner,Urquell,GuinnessStout,HarpLager,Smirnoff'sIce,DrinksAmericas'TrumpVodka,andmostBrooklynBreweryproducts.

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AftertheMerger,ManhattanBeerwillbetheNation’sSecondLargestBeerDistributor

ManhattanBeer(current)

PhoenixBeverage

Fleet 500 Trucks 150Trucks

Volume 35millioncases 13millioncases

Facilities Hunt’sPoint(Bronx),Brooklyn, Queens,HudsonValley,LongIsland

RedHook(Brooklyn),

MarketPosition 5th inU.S.$680mil.sales

UnionEmployees

700Workers United

400IBTLocal812

LocalUnionCoreIndustriesTeamstersLocal812 Laundry,DistributionandFood

ServicejointBoard,WorkersUnited,SEIU

• IndustrialLaundry• FoodService• Retail

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• BreweryandSoftDrinkDriver,Helper,Warehouse,Merchandiser,Production,QualityControl,Mechanic,Vending,FountainandRecyclingtitles.

BeverageContractComparisonPhoenix/Local812 ManhattanBeer/Joint

BoardJobClassifications 9 4

VacationPay 1/52totalcompensation none

DriverDailyPayGuarantees

Yes No

HomeDrates $200(first 3stops),$50eachadditionalstop

$125

DriverCommissions(upstate)

$.54perfullcase $.30perfullcase

ReducedDriverCommissionwithHelper

No Yes– 50% split

Overtime After8hours After40hours

WarehouseHourlyWage $25.82 $10.50($12after2years)

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BeverageContractComparisonPhoenix/Local812 ManhattanBeer/Joint

BoardTrainingBonuses Yes No

PensionContributions(perhour)

$3.95(allclassifications) Driver - $3..63Helpers- $1.52ForkliftOperator- $1.67Warehouse- $1.16

PensionMultiplier $100peryearofservice(allclassifications)

$32 peryearofservicefordrivers(lessforotherclassifications)

AnnualEmployee HealthContribution(includingdental)

None Individual - $336Family- $864

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Local812Employers• Ippolitio Distributors,AnheuserBuschStatenIsland

• OakBeverage• CedarBeverages• Boening BrothersDistributors

• Betta-WayTrucking• ACGGas• Boro Recycling

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• CocaColaRefreshments• PepsiColaBottlingofNewYork• PepsiColaDistributorsAssn.• AnheuserBuschInBev• ClareRoseInc.,AnheuserBuschNassau&Suffolk

• PhoenixLoboBeverages• CanadaDryBottlingofNewYork

• Dr.Pepper/SnappleGroupofNewYork

• UnionBeer,AnheuserBuschBrooklyn

NewMembers

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• CocaColahasagreedtomove5millioncasesofVitaminWater,SmartWaterandMonsterEnergydrinksontoLocal812trucksasaresultofan812organizingcampaignagainstBigGeyser.

CocaColaalsoclosedanon-unionblowmoldfacilityandmovedittoaLocal812representedproductionfacility.300newjobsexpected.

• InBev /AnheuserBuschhasagreedtorecognitionwithLocal812forupstatewholesalersDana,Dutchess andBertolini Distributors.200newmembersareexpected.

• GainedrecognitionfromBrooklynBrewery.80newjobs.

• TransferdiscussionswithIBEW363areongoingfor120membersattheAnheuserBuschMetalContainerfacilityinNewburgh.

ADecadeofOrganizing

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• 70jobs– Dr.Pepper/Snapple,NewburghElmsfordandLongIsland.

• 40jobs– MTCTrucking,RedHook,BrooklynPortDrivers.

• 75jobs– LoboDistributors,HudsonValley.

• 120jobs– PhoenixMerchandisers,Brooklyn&HudsonValley

• 40jobs- UnionBeerSales,Brooklyn

• 20jobs– MTORecycling,Brooklyn

Local812TodayStrongFoundation

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• $400millionpensionfundthatprovidesmemberswitha$100multiplier.

• HealthFundhas$40millioninreserves.Aplatinumplanwithnomembercontributions,fullmedical,dentalandeyecare.$125klifeinsurancepolicy.

• $300,000monthlydues.1millioninassets,includinga$500,000Organizing,StrikeandDefenseFund.

• Investedover$500,000inindustryorganizingcampaignsandeducation.Trained250membervolunteers.

• CreatedtheLocal812ScholarshipFund.Morethanahalfmillionawardedtothechildrenofmembers.

Local812TodayStrongFoundation

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• $250,000StatePAC.Defeatedeffortstolimitsodaservingsandtaxsoda.

• Annualmemberseminars,shopstewardsequippedwithAndroidtablets.

• Morethan25leadingbeverageindustrynegotiatedoverthepast4yearstotalingagainofover$1.5billion.Accomplishedwithoutstrikesorjobactions.

NYBeverageIndustryByLocalUnion

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61% 7% 3%

1%

1% 11%

3% 8% 5%

Local812- Pepsi,Coke

Local812- Phoenix

Local812- Dana,Dutchess,Bertolini(rec.)

Local812- BrooklynBrewery(rec)

IBEW363- CanPlant(transfer)

UNITE- ManhattanBeer

IUJAT- RedBull,BigGeyser

NonUnion- PolandSprings/Nestles

NonUnion- PepsiNewburgh

NYUnionBeerDistributorsMarketShare

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ManhattanBeer39%

Phoenix/Lobo23%

ABHuntsPoint9%

ClareRose7%

OakBev.7%

3% 3% 0% 3% 3% 3% Sales

ManhattanBeer

Phoenix/Lobo

ABHuntsPoint

ClareRose

OakBev.

Boening/Cedar

UnionBeer

Ippolito

DanaDist.

DutchessBeer

BertoliniDist.

ProjectedNYUnionBeerDistributors- 2017

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ManhattanBeer70%

ABHuntsPoint22%

ClareRose5%

UnionBeer3%

MarketShare

ManhattanBeer

ABHuntsPoint

ClareRose

UnionBeer

Local812MembershipWithManhattanBeer

70%

17%

7% 6%

7,000members

ManhattanBeer/Pepsi/CanadaDry/Snapple

CocaCola

AnhueserBusch

Other

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