Zhuhai Kirin President Brewery Co. Successful joint venture in the Chinese beer market

For distribution in the Shanghai, Guangzhou and other regions of southern China, Zhuhai Kirin President Brewery was formed, in which Kirin Brewery Co. Ltd. has a 60% share and President Enterprise Co., the leading food company in Taiwan, holds a 40% share. The new enterprise has a turnover of 32 million US Dollars, produces about 700,000 hl beer, and employs around 700 workers.

The Japanese Kirin Brewery Co. Ltd., Tokyo, took over a 45% share in Nathan Lion Ltd. over a year ago in order to have a future in the international beer market as an active, global competitor. Lion Nathan Ltd. leads the market in New Zealand with a market share of 54% and also holds a 41% share of the Australian market. for distribution in the Shanghai, Guangzhou and other regions of southern China.K...

Brew.Drink Tech Asia 2000 3rd International Brewing and Beverage Equipment & Technology Exhibition in Singapore, 21 - 23 Marc

Over 800 brewing and beverage professionals will celebrate the 6th millennium of beer brewing as well as discuss and plan for the future developments of the brewing industry when they meet in Singapore in March 2000. The 26th Convention of the Institute of Brewing (IOB) Convention will be held from 19 to 24 March 2000 alongside the Brew.Drink Tech Asia 2000 exhibition.

Brew.Drink Tech Asia 2000, Singapore’s leading brewing and beverage technology exhibition will return for its third presentation. This event’s focus includes equipment for brewing, consultancy and education, packaging and storage equipment, waste management, and other services.

The organisers are expecting a record attendance of delegates from all over the world.

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Who is afraid of the black tiger

Kloster Co. has launched a dark beer (7% ABV), Black Tiger, which represents the brewer’s first foray into the low-to-mid price range after having sold the premium priced Kloster for nearly 20 years. Black Tiger is reasonably priced at US$2.48 for a 3-pack of 640 ml bottles and comes in green bottles which are usually associated with premium beers. Standard brands, such as Singha and Chang, are sold in brown bottles.
Kloster is hoping that Black Tiger will establish a new market segment, namely dark beer, as opposed to lagers, and capture a 2 per cent share of the market. The beer will be pushed via the company’s 150 distributors. A media budget of US$1.24 million is to support the launch. Should the new beer prove successful, Kloster would be able to use its 0.24 per 640ml bottle..

New brewpub opened

Although microbreweries are still suffering from a decline in business caused by the recession, Baan Tawandang Co. announced the opening of the country’s largest brewpub on Rama III Road in Bangkok. It has room for 1,000 customers and a brewing capacity of 5,000 hl annually. Tawandang Brew House represents a 70 million baht investment (US$1.87 million). By targeting the middle-income earners, the brewpub is expected to turn over 10 million baht a month (US$270,000). Break-even is scheduled for 2002. Tawandang Brew House is a spin-off from Baan Tawandang Co., which was set up six years ago and runs three pubs in Bangkok with a total of 2,500 seats. The brewpub will supply 30 per cent of its beer to the group’s other outlets.

FDA under fire

Thailand’s Food and Drugs Administration (FDA) has granted a 30 mg increase of caffeine content in energy drinks to 80 mg a bottle. The ruling, which includes control of advertisements, will be forwarded to the National Food Commission before it is endorsed as an FDA announcement. However, the Foundation for Consumers questioned the FDA’s role in protecting consumers’ health. The Foundation expressed doubts over how the FDA would control the consumption of such energy drinks when it has not been able to reduce the daily consumption of energy drinks with a lower caffeine content.

TTWB reorganised

The Taiwan Tobacco and Wine Board (TTWB), a state-owned monopoly producer of tobacco and alcoholic drinks, will be incorporated as Taiwan Tobacco and Wine Corp. The Ministry of Finance has already approved of the plan. After the expected enactment of the Tobacco and Alcoholic Drinks Law, the TTWB will apply to the Ministry of Economic Affairs to incorporate itself. The new company will have five divisions: beer, tobacco, wine, liquor and distribution. Each division will be run as a profit centre. The TTWB also acts as an importer of tobacco and alcoholic drinks.

More price wars

In December new licensing laws came into effect which allow the sale of beer in supermarkets and the sale on everyday of the year except Good Friday, Easter Sunday and Christmas Day. The legal age for alcohol consumption has been lowered from 20 to 18 years. It is believed that supermarket sales of beer will soon reach the level of 20 per cent. In a declining beer market, New Zealand brewers have every reason to worry about their profits as big supermarket chains earn a little margin on the beer and treat is as a loss leader to provide shopping choice for consumers. In December some supermarkets were selling beer at up to NZ$7 lower than liquor stores to a 12-pack.

Tax games

The Ministry of Finance and Economy and the ruling coalition parties agreed that from 2000 the tax rate on soju will be raised from 35 per cent to 80 per cent. This tax hike will increase the retail price of a 360ml bottle of soju from US58 cents to US78 cents. Sales of soju are expected to fall by 13 per cent. The ministry and the government also agreed to lower the tax rate on whisky from 100 per cent to 80 per cent and to gradually bring down the rate on beer from 130 per cent to 120 percent in 2000. Further rate cuts on beer are expected in 2001 (110%) and in 2002 (100%). Soju brewers have strongly opposed the tax reforms, saying that many soju brewers will face bankruptcy if the rate is raised by more than 10 per cent..

Budweiser gets a new deal

Kirin Brewery Co. and Anheuser Busch Co. signed a new contract which allows both brewers to share equally in the profits from Japanese sales of Budweiser. The contract is somewhat atypical as licensees usually receive a much smaller share in licensed production. Anheuser-Busch made the concession to give Kirin a stronger incentive to promote the product and increase sales. The original contract between Kirin and Anheuser-Busch dates back to1993 but will be liquidated by March due to mounting debt. Kirin Brewery Co. expects to post ¥64 billion in pre-tax profits for the year ended December 1999, up 6 per cent on the previous year. The increase, however, is mainly attributed to the company’s restructuring efforts. Sales are expected to drop about 1 per cent to ¥1,130 billion..

Be hard, drink soft

Although Germany has not succeeded yet in following the WHO’s recommendation to reduce per capita alcohol consumption to 2 litres annually - Germans on average still drink 10 litres of alcohol - the decline in alcohol consumption across the board in recent years has made health advocates cautiously optimistic. In its annual report, the German Agency Against the Dangers of Addiction, lists the government’s revenue from alcohol consumption at DM7.1 billion (US$3.75 billion) in 1998. The costs of alcohol abuse are estimated at DM60 billion (US$31.7 billion). For comparison, revenues from smoking are DM20 billion (US$10.5 billion), costs are DM80 billion (US$42.3 billion).
The issue communicated by members of the prevention community is not a NO to alcohol as such..