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Asia/Australia
After having made two (failed) attempts to buy big (see BWI 2/00), Tasmanian brewer J. Boag & Son itself became the target of a take-over bid. At the end of April, San Miguel Corp. (SMC) of the Philippines made an A$92 million offer (US$53,3 million) for Boag’s which was just too good to be refused.
After all, SMC already controlled 14.9% of Boag’s. At the beginning of the 1990s, SMC showed an interest in Tasmania. In those days, the Cascade Brewery was the object of desire. However, SMC’s bid was considered too low and thus CUB could mount a successful take-over in January 1993.
Boag’s and the pub real estate - the rest of the Cascade group - were bought by Philip Adkins’ company Cadenza. Through Cadenza he holds a significant slice (about 30%) of Boag’s..
Asia/Australia
The pickup in economic activity and rising exports have been positive for the food and beverage industry in Switzerland in 1999.
Non-alcoholic beverages account for almost three quarters of the industry’s turnover. In 1980, it was only two thirds. Volume growth of non-alcoholic beverages is largely due to rising sales of mineral water.
The introduction of a standard tax rate on spirits has put importers of these beverages on a par with domestic producers, with the result that import prices have dropped significantly. Swiss producers plan to counter the stronger import pressure with qualitative advantages and increasing emphasis on exports.
1999 was a year with a very good wine harvest. To reduce stocks, sales prices were lowered. Their market share rose by 1.8% to 85%..
Asia/Australia
The South Korean Fair Trade Commission has announced that it will liberalise start-up conditions for new breweries which will clear the way for the establishment of micro breweries. Currently, prospective brewers face heavy start-up capital costs as a storage tank size of 60,000 hl is required. In comparison, Japan allows tanks of just 600 hl. The long-term imperative is to be on par with Japan. The official Yonhap news agency reported that in 1999 per capita intake per category was 59 360ml bottles of soju (traditional Korean spirits), 61 half-litre bottles of beer and 1.28 half-litre bottles of whiskey. However, the report said that this year alcohol consumption is expected to fall by 8.7%.
Asia/Australia
Fraser&Neave (F&N) has said that it will focus on its core businesses and new ventures as part of a its strategy to restore the company to its pre-Asian Crisis performance. The group has recently reorganised its management and acquired selected businesses, including a 60% stake in United Food’s ice cream business in Thailand. It has also divested loss-making F&N Coca Cola. A strong earnings recovery in the brewing division will be possible if Asia Pacific Breweries, in which F&N has a stake, restructures its China operations.
Asia/Australia
San Miguel Corp has announced the launch of a range of flavoured alcoholic beverages with the aim of increasing its share of the country’s beverage market. The brand portfolio will include new brands such as a tequila-based beer, a vodka-based drink and a new fruit variant of the non-alcoholic Cali Shandy called Cali Noni. Priced at US$1.22, the vodka-drink would be positioned to compete against brands such as Smirnoff Mule. The new beverages will come in attractive containers comparable with those in foreign markets. San Miguel Brewing Philippines, which has a market share of 85% to 87%, saw domestic beer volumes fall 4% in the third quarter of 1999 due to weakened purchasing power, high unemployment and contractions in the manufacturing sector.23 million..
Asia/Australia
Suntory Ltd. may be Japan‘s largest whiskey distiller, but it has never had much luck with its beer division. Now Suntory aims to bring its beer business into the black by increasing the sales of its Magnum Dry, an happoshu launched last June. Suntory targets combined sales of 57.8 million cases (20 x 633ml bottles) of regular beer and happoshu this year, up 14% from 1999. It also targets a beer market share of 10%, which would be the first double-digit figure in its 37-year brewing history. Since September 1999, the brewer has secured a 10% market share on a single month basis thanks to strong sales of Magnum Dry. However, industry observers believe that the growth rate of happoshu is going to slow down..
Asia/Australia
Sapporo Breweries forecasted ¥4.5 billion in consolidated net profit in the year ended December 1999, compared with a net loss of ¥11.2 billion in 1998, taking the brewer into the black for the first time in three years. The improved performance is partly due to the fact that the brewer had posted an appraisal loss of ¥7.3 billion on securities holdings a year earlier. Group sales are expected to have fallen 6% to about ¥570 billion because the strong sales of low-malt beverages failed to offset a decline in regular beer sales. Revenues from restaurants have also weakened. Revenue from real estate is projected to remain unchanged. The brewer’s total market share for regular beers and low-malt beverages is expected to be 0.9% points lower at 15.1%.
Asia/Australia
Kirin Brewery Co. expects pre-tax profit for the current financial year ending December 2000 to rise 17% to ¥76 billion (US$760m). The brewer hopes to increase the sales of its low-malt beverages and to reduce expenses on promotions. It plans to benefit from streamlining production following the closure of its plant in Takasaki, Gunma Prefecture. Extraordinary profit from the sale of the brewery site in Tokyo, totalling at ¥2 billion, will go toward covering the ¥15 billion extraordinary loss incurred from closing the Takasaki plant.
As a result, net profit growth is forecasted at 10% to ¥33 billion. Sales for the year 1999 likely dipped 4% to ¥1.1 trillion as combined sales of regular beers and low-malt beverages fell 1.7%..
Asia/Australia
Asahi Breweries, plans to phase out seven of its 15 brands this year and concentrate on selling key brands such as Asahi Super Dry. The production of two national brands and five regional brands is scheduled to terminate in March. The move is expected to help increase operating profit by 42% to ¥95 billion (US$950 million). In the financial year ended December 1999 Asahi is believed to have seen another decline in operating profit amid increased spending on promotions that included a beer coupon campaign. The company hopes to reduce promotional expenses by ¥6 billion (US$60 million) this year.
Asia/Australia
Given the current economic climate in Japan, it is small wonder that the sales of low-malt beverages have continued to be on the increase. 83% of the respondents to Sapporo’s survey in June 1999 claimed that the price was the main reason for purchasing an happoshu.
Happoshu, as the sparkling malt beverage is called, was launched in 1994 and has since climbed to 19% of the total beer market. This was announced in a presentation by Dr Inoue at the Institute of Brewing‘s Conference in Singapore in March. While a 500 ml can of regular beer retails at ¥300 (US$3), a can of happoshu costs only ¥210. The ten happoshu brands have 5.4% ABV and BU between 17 and 21. Last year, 14 million hl of the beverage were produced by Japan’s brewers, except for Asahi..
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BRAUWELT on tour
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BRAUWELT on tour
