Heineken may go local

It could just be a well-planted rumour to annoy the local bigwig SABMiller that Heineken is considering whether to build a brewery in South Africa, prior to the expiry of a licence for its second brand, Amstel, now held by SABMiller. However, Heineken has every reason to ponder such an option and its officials said recently that a decision was likely before the end of 2006. Heineken that is in bed with Diageo and Namibia Breweries has had its Amstel brand brewed by Namibia Breweries and exported to South Africa since late 2004. Heineken and Diageo have a combined 28.9 percent stake in Namibia Breweries, having taken over InBev’s stake in Namibia’s dominant brewer. ..

Defying the doomsayers

For the financial year ending 31 March 2005, SABMiller’s local division, Beer South Africa, reported a 13 percent increase in turnover and a 20 percent hike in earnings before interest, tax and amortisation (EBITA). A 4 percent increase in overall volumes and a strong 50 percent hike in premium brand volumes helped to generate an impressive increase in EBITA margins to 28.1 percent from 26.6 percent. Graham Mackay, SABMiller’s long-serving CEO, was quoted as saying that the strong local results had benefited from the country’s robust economic performance. According to Mackay, economic and monetary policy had resulted in key economic indicators such as inflation, consumer confidence and growth in gross domestic product (GDP) all moving in the right direction. ...

Heineken to acquire majority stake in Consolidated Breweries

True to its well-proven business principles, Heineken will increase its stake in Nigeria’s Consolidated Breweries from 24 percent to a controlling stake of 50.05 percent. At the beginning of December, Heineken N.V. said that it has reached an agreement in principle with a co-shareholder to up its stake. The acquisition will be financed from available cash resources. As agreed by both parties the acquisition price will not be disclosed. The investment will be immediately earnings accretive and value accretive in 2008. The deal is subject to a satisfactory outcome of due diligence and obtaining regulatory approval. Consolidated Breweries was incorporated in 1980. According to Heineken it has a 9.5 million, an EBITDA of EUR15.4 million and an EBIT of EUR13.5 million in 2003..

Any chances for direct-fired kettles

SAB, the South African division of SABMiller, has announced a R5 billion capital expenditure plan (EUR650 million) aimed at ensuring it is well placed to take advantage of a strong demand for beer and premium beers in particular. The investment plan, which is to be implemented starting next year, will involve an expenditure of about R1 billion a year for five years. Over 50 percent of this investment will be focused on expanding existing capacity within SAB’s seven breweries. As there are no plans to build new breweries, SAB may even find some cash to spare to invest in some direct-fired kettles for the production of Pilsner Urquell. At present, the group’s capacity enables it to produce 30 million hl of beer a year. In financial 2004, SAB utilised 79 percent of this capacity..

A new beginning

By all appearances Sierra Leone is no longer the worst place on earth to live. After years of fighting, peace has been restored, following a military intervention by the United Nations and the installation of
a new, democratically elected government. With the things improving, Sierra Leone Brewery Ltd., which was only re-opened in 2001 after being severely damaged during the rebellion in 2000, has decided to re-launch its popular Star beer brand. The brewery, which is located in the capital of Freetown, has also commissioned a new bottling line which is estimated to cost some EUR6 million. Later the permission was granted to brew Guinness Stout and in 1992, a non-alcoholic malt drink, Maltina, was introduced. Currently the brewery is owned by Heineken (42.000 hl..

Putting your house in order

Another blue chip investment is about to disappear from the Johannesburg Securities Exchange if ABI minority shareholders accept the offer made by SABMiller. Having sold off its holding in a retail clothing chain a few months ago, SABMiller announced in September that it would use the liquidity to buy out minority interests in Amalgamated Beverage Industries, or short ABI (a Coca-Cola bottler for South Africa), in which it already has a 74 percent stake.
The R91 a share offer represents a premium of 32 percent on the closing price at which ABI traded on the day before its first cautionary announcement was made in July. Because the offer has been recommended by the board, SABMiller needs the support of only 75 percent of the minority shareholders.8 billion).3x (on 2005 estimates)..

Sexy skimpy bottles

Guinness Nigeria has introduced a new stout bottle whose shape reflects the aspirational lifestyle of Nigerians. This is the first time that Guinness Nigeria has changed its stout bottle since the brand was introduced 32 years ago. As part of the celebration of the new Guinness stout bottle, the brewer staged a BlackGold concert featuring hip-hop icons Wyclef Jean, Femi Kuti and other Nigerian crooners. Between September and November Guinness has embarked on a BlackGold Tour that will take Guinness’ road show to eight cities across Nigeria.
The new bottle leaves Guinness Nigeria with the tiny problem of having to recycle 130 million old-style stout bottles. At present, Guinness is working with local glass manufacturers to turn the recovered bottles into new bottles..

Investment in brewery and business location Kenya Breweries relies on state-of-the-art plant engineering

East African Breweries Limited (EABL) is a well-established company and one of the most significant economic factors in eastern Africa. At the same time, EABL is a company group that enjoys full respect and regard from the whole population. According to global management consultants PricewaterhouseCoopers, in 2002 East African Breweries was the most respected company in East Africa for the third year running, beating even Kenya Airways.

This situation is not expected to have changed in 2003. And this is not just because people like EABL’s quality beer, but it also relates to the company’s strong commitment to innovation, the interesting marketing concept, dedicated social and environmental commitment, and excellent training for its employees. 90 Kenya shillings), an increase of 4.

What’s in a name?

...a lot if you are called Bavaria Brau and have a namesake in the Netherlands. The Netherlands’ fourth largest brewer Bavaria has joined a consortium of local investors to take over the Bavaria Brau Brewery, located near Johannesburg, which went into liquidation last July with liabilities of R37 million (USD5.7 million). This is Bavaria’s first investment outside the Netherlands. Bavaria will hold 60 percent of the South African operations, the consortium 40 percent.

SAB defied its sceptics

If you see someone drinking a beer in India there is a 34 percent chance it is a SABMiller product; in the Czech Republic the chance of the beer being SABMiller’s is 49 percent; in Italy 25 percent; in Romania 20 percent; and in the US the chance is 18 percent. In China, however, there’s an 88 percent chance it is not SABMiller. Anyone drinking a beer in Mozambique, Swaziland, Zimbabwe, Zambia, Botswana or Lesotho can only be drinking SABMiller. In South Africa, if you’re drinking a beer down at your local, there’s a 98 percent chance it’s a SABMiller product. Unless you are drinking it in one of the fancier pubs where they specialise in premium beers. The premium sector now accounts for 6 percent of the local market and SABMiller has only a 70 percent share of it....