Where to buy matilda bay wine coolers

Miller Brewing Co. is turning off the spigot on its wine business.

Miller said Wednesday that it will cease production of its Matilda Bay wine cooler in early November.

The decision did not surprise industry observers, as the wine cooler market has been on a decline and Matilda Bay, introduced in 1987, had not been a major factor. Seagram and E.&J. Gallo with its Bartles & Jaymes have been the top brands, together selling nearly 65 percent of wine coolers.

Miller this summer reportedly was trying to unload Matilda Bay, but

''they apparently couldn`t find a buyer,'' said a source. ''They`re

(Miller) smart to get rid of Matilda Bay. They ought to be concentrating on beers, a business they know best,'' said the observer. Brands of Miller, the No. 2 brewer behind Anheuser-Busch, include Lite, Miller High Life and Miller Genuine Draft.

''From a business standpoint, it is economically imprudent for us to continue production and marketing of Matilda Bay,'' said an official of Milwaukee-based Miller, a unit of Philip Morris Cos.

Miller recently has sharply trimmed promotional support behind Matilda Bay, with almost no measured media advertising in 1989, down from $19.4 million in 1988 and $9.3 million in 1987 as reported by Leading National Advertisers.

By scrapping Matilda Bay, Miller leaves ad agency J. Walter Thompson USA with only one established brand. JWT Chicago has Miller`s Lowenbrau account. JWT New York had worked on Matilda Bay.

Miller`s other agencies are Backer Spielvogel Bates in New York and Leo Burnett Co.

As the No. 4 seller in wine coolers, Matilda Bay last year held 7.5 percent of the market, trailing Seagram`s 34 percent, Bartles & Jaymes` 31 percent and California Cooler`s 9.5 percent. The latter, the category innovator and onetime leader, now is marketed by Stroh Brewery.

Wine cooler sales were down 14 percent in 1988, and consumers this year have put an even bigger chill in the category as another drop, of as much as 20 percent, is expected.

O`Grady heads East

Jack O`Grady has gotten a new lease on life-barely 200 feet east of his longtime showplace offices at 333 N. Michigan Ave. In moving to expanded quarters (some 13,000 square feet) at 111 E. Wacker Dr., O`Grady is vacating space he had for 32 years. ''You can get stagnant staying in one place too long,'' says O`Grady, whose 40-member firm, now operating as O`Grady Sales Promotion, has become more involved in providing support and helping clients solve marketing and promotion problems. O`Grady has done this for such blue-chippers as Zenith, Miller Brewing, Kraft, R.R. Donnelley and Taylor Freezer. Originally an art studio, O`Grady ventured into design, illustration and photography. O`Grady still offers those services, but problem solving has become the thrust of his business. ''The problems of the marketplace are much more complex than they were years ago,'' says O`Grady, one of the nation`s standout photographers. ''A lot of standard concepts just don`t cut it anymore.''

- Stouffer Foods Corp.`s new line of low-fat, low-cholesterol and low-sodium frozen entrees under the Right Course label are expected to be available in the Chicago market in October as part of a national introduction. Stouffer, a Nestle unit, plans to announce the new line the week of Sept. 28. Tatham-Laird & Kudner has the advertising assignment on Right Course as well as well Irrezestables, a frozen line of spicy entrees, and the client`s mainstay Lean Cuisine.

- Young & Rubicam Inc. is near an acquisition of Landor Associates, a San Francisco firm specializing in corporate identity programs. ''It`s not a done deal yet, but both sides are pretty close,'' says a source. The deal would further broaden Y&R`s communications capabilities, which range from advertising to public relations (Burson-Marsteller) and promotion-

merchandising (Rogers Merchandising).

On the move: Douglas R. Brooks and Bart J. Neri were promoted to senior vice president and vice president of sales, respectively, at Burke Beverage Inc. in La Grange. . . . Jon Keller became Midwest sales manager for Premiere Radio Networks.

Strictly Personal: Birthday greetings to Jerry Lambert, Suzanne Sisco, David Dolton, Gus Melonas and Susan Barrett.

Warner Home Video`s coming ''Batman'' movie videocassette is getting a push from Diet Coke; a 30-second commercial for the soft drink airing in November touts Batman characters and the Batmobile.

Burger King is going cut-rate in a bid to slice into McDonald`s lead in fast food. In a national promotion, BK will offer 99-cent specials on various menu items each weekday. Promotional support includes the the first commercials created by Saatchi & Saatchi, recently hired as one of BK`s new agencies.

Playtex Family Products Corp. in Stamford, Conn., assigned advertising of its Jhirmack line of shampoos and hair conditioners to Backer Spielvogel Bates.