Constellation’s transaction with CHAMP, which values the entire business at AUD 290 million, includes virtually all of Constellation’s Australian, UK and South African brands, wineries, facilities and vineyards, as well as its 50 percent stake in UK wholesaler Matthew Clark.
It’s an interesting strategy to launch an on-premise brand only. But it makes sense in view of the fact that the two major off-premise chains are competing with each other on price. Major brands get discounted so frequently that brewers have to focus on the on-premise (30 percent of total beer sales, says Foster’s beer unit CUB) if they want to save their bottom lines.
He joined the family-owned Adelaide Coopers brewery as a fourth generation member, having trained as a master brewer in England right after the second world war.
Managing Director Tim Cooper told the media he had noted an industry-wide decline in beer volumes since the second quarter of 2010 but that premium beer was buoyant, with sales of imported, craft and higher-priced beverages – such as the Coopers range – rising 10 percent.
However, the company might have timed the promotion perfectly. Australia’s cricket team has slipped below England’s in the Test rankings and is battling a raft of injuries and poor form ahead of the series.
Efes Beer Group reported on 8 November 2010 that during the nine months of 2010 (ended 30 September 2010) its sales volume reached 19 million hl beer – up 8.8 percent on the same period a year ago. While the sales volume in Turkey’s beer operations declined by 2.6 percent, beer sales in the rest of the group were up 15.9 percent.
The Turks’ moderate drinking habits (13 litres of beer per capita) mean alcohol has a fairly low weight in the consumer price index. The impact of a tax hike on tobacco – which the government appears to be forgoing this year – would have been much greater, since around half of male Turks smoke.
The reason why the Northern Territory government is so keen to see these vodka mixes disappear is that it fears the drink could aggravate alcohol abuse especially among its Aborigines. The Northern Territory is home to only 220,000 people, while Australia has 22.5 million inhabitants. However, over 30 percent of the Northern Territory’s population is Aboriginal.
Sometimes you can only shake your head in wonder over the blatant nonsense some strategic planning departments produce.
Because of the strong Aussie dollar, the interest in Foster’s beer and wine units seems to be waning. That may buy Foster’s extra time and extend the shelf-life of its beer and wine units as independents once the split has been completed.
						

