MEG Media Group Inc., financiers behind the stalled sequel to Bob and Doug McKenzie's 1983 cult classic Strange Brew, say the project failed because its "questionable appeal" was considered a risk by potential backers.

Mr. Thomas said yesterday he is in talks to possible revive the project. "We are going to make this movie," he said.

Battle brewing over halted movie project
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By BRENDA BOUW - The Financial Post

  MEG  Media  Group Inc., financiers behind the stalled sequel to
Bob and Doug McKenzie's 1983 cult classic Strange Brew,  say  the
project failed because its "questionable appeal" was considered a
risk by potential backers.

  Toronto-based MEG said  yesterday  the  film's  financing  fell
through  because  the  insurance company underwriting the project
was not satisfied with its terms and conditions.

  "The quality of the Home Brew project as  a  viable  and  prof-
itable  business  entity were raised as key concerns by risk man-
agers including: the limited, regional appeal of  the  film  con-
cept; the minimal opportunities to attract large audiences to the
film; and the questionable appeal of  the  film  to  the  current
movie-going demographic," MEG said in a release.

  It  is  the first time MEG has spoken publicly about its battle
with Maple Palm Productions Inc., the film company started by ac-
tor  Dave Thomas, (a.k.a. Doug McKenzie), over the Home Brew pro-
ject. Production of the film was cancelled last month  after  the
funding agreement between both sides collapsed.

  MEG  said  a last-minute attempt to find another insurer to un-
derwrite the project failed after a condition to find a U.S. dis-
tributor  could  not be met in time for July 19, the day the film
was to begin shooting in Toronto.

  John Hamilton, MEG's president, said  he  negotiated  "in  good
faith" with Maple Palm and "in earnest effort to salvage the Home
Brew project."

  The $15-million (US) film, scheduled  for  release  early  next
year  with  co-stars Rick Moranis and Dan Aykroyd, is now on hold
indefinitely.

  Mr. Thomas said yesterday he is in talks to possibly revive the
project.

  "We are going to make this movie," he said.

  Mr. Thomas also refuted MEG's allegations Home Brew was not at-
tractive to movie-goers, saying the McKenzie brothers  have  been
popular  across  North America as a result of Miller beer commer-
cials and Strange Brew television and home video sales.  He  also
said  research  was  done before the Home Brew project was final-
ized, which proved the sequel would be well-received in both  the
U.S. and Canada.

  "The     conclusion  was that these characters had a high recogni-
tion in the American marketplace and they were extremely likeable
characters.   Based on this and other research we determined this
project was viable males," Mr. Thomas said.

  Both sides have filed lawsuits against  the  other  since  Home
Brew's production was halted.

  The  two sides were in settlement negotiations for weeks trying
to avoid a lawsuit. The talks fell apart late last week.  Neither
side has yet filed a defence in the two separate lawsuits.

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