IPO postponed

Coca-Cola Icecek, the Turkish unit of the soft drinks giant, in which Anadolu Efes has a 40 percent stake, has again postponed its IPO plans in November. The company which planned to float about a third of its stock announced that demand was not sufficient to guarantee share price stability following the sale of the shares. This is the second time this year that the bottler has postponed its IPO. The first IPO in June was cancelled due to "weak market conditions". Turkey is the 6th largest market in Europe in terms of total consumption of Coca-Cola products.

Gone shopping

With Japan’s beer production going south, Japanese brewers have begun to look east with greater interest. In November, Kirin Brewery Co, Japan’s major beverage company by sales, announced that it would spend JPY3.9 billion, or USD37.6 million, for a 25 percent stake in Dalian Daxue Brewery, located in northeast China. Kirin will acquire all of the shares to be floated by Dalian Daxue and as a result will own 25 percent of all outstanding shares.
Kirin said it planned to double the Dalian-based brewer’s yearly production capacity to 4.0 million hl by December 2008. It will add to the Zhuhai Kirin President Brewery Co., in Guangdong Province, which Kirin already runs. China, which became the world’s biggest beer producer in 2002, brewed 254 million hl last year, according to Kirin..

Solid results

In November, Lion Nathan reported that Net Profit after Tax (NPAT), before significant items, grew 12.5 percent to AUD202.7 million during the fiscal year 2004. Operating cash flow was up 2.5 percent on the same period to AUD274 million. During the year Lion Nathan took a number of significant strategic initiatives and reviewed the carrying value of its assets which had a one-off impact on the reported result for the 2004 fiscal year. The major items were the sale of its Chinese beer business (realising a profit of AUD104.1 million) in September to SABMiller, the sale of its Victorian hotel portfolio, HMC (a loss of AUD34.2 million) and an AUD71.5 million write-down in the carrying value of its Australian wine business.6 million, reducing reported NPAT to AUD160.1 million.9 million..

Ichiban - the new Kirin abroad

Kirin Brewery Co. is planning to make its Ichiban brand its main product overseas in an effort to boost beer sales abroad. Currently, Kirin offers two brands to consumers outside Japan: Kirin Lager and Ichiban. Kirin has already shifted to the latter brand in the U.S. and South Korea and plans to do so in Europe sometime soon.

Flat beer sales

Beer sales in Australia have stagnated in the past year for liquor group Lion Nathan, but the brewer is hoping that it can reap rewards from higher prices. The company, commenting on its third-quarter performance, confirmed that full-year net profit after tax was on track with previous forecasts of AUD195 million to AUD200 million.

We are not amused

Foster’s 2004 annual report bears the slogan "Foster’s - part of the moment". Considering the group’s performance last year, it must have been a case of wishful thinking. Foster’s products cannot have been part of many ‘moments’ given that sales by continuing businesses fell 6 percent to AUD3.6 billion. The oversupply of cheap wine on the global market reduced Beringer’s 2003/2004 sales by 18 percent to AUD1.6 billion. Foster’s wine division earnings (EBITA) fell 32 percent to AUD292 million. Just as well that the CUB beer business had a 9.5 percent EBITA rise to AUD520 million with sales up 6.9 percent to AUD1.78 billion. Luckily, the sale of Foster’s leisure division ALH last year lifted net profit 73 percent to USD799 million. The offer was to save you AUD22.48..

Lucky me

It’s a funny old world: For years no one had been mad enough to buy Lion Nathan’s three unprofitable breweries in China. Then, suddenly SABMiller comes along, clinches the deal and tells the world that though this be madness, there was method in it. After losing out on the Harbin brewing business in China to Anheuser-Busch, SABMiller has announced the acquisition of Lion Nathan’s Chinese division for USD154 million, including about USD83 million of debt. Apparently, SABMiller thought it best to immediately recycle the USD211 million of cash it generated when it sold its shares in Harbin to Anheuser-Busch a few months ago. The Chinese market is the largest in the world yet highly fragmented, making it hard for brewers to make any money.8, which is more in line with the average.5 million..

Not for the fainthearted

It obviously takes a lot of guts - and muscle - to invest in Belarus. The country’s reputation is far from savoury - and this has nothing to do with the sad fact that Belarus is the country most affected by the nuclear fall-out following the Chernobyl disaster. Nevertheless, the International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, has signed an agreement to make an equity investment of USD3 million in Detroit Belarus Brewing Company ("DBBC") and to lend USD7
million to CJSC Belarus Brewing Company ("BBC"). DBBC and BBC are participating in the privatization of Dednovo Brewery ("Dednovo"), located in Bobruisk of the Mohilev Region in central Belarus.
This is the first privatization of a brewery involving western investors. For many U.

Hunting the tiger

Asia Pacific Breweries Ltd. (APB) announced in July that its brand Tiger Beer would shortly be brewed locally in Thailand. This makes Thailand the seventh country to brew the popular beer according to APB. First launched in 1932, Tiger Beer is available today in more than 60 countries including the UK, the US and the Middle East. Tiger Beer is not new to the Thai beer market as Singapore has been exporting it to Thailand since the 1930s. In view of Thailand’s improving economic progress, its sizeable beer market and growing affluence of its population, APB decided that it is now timely to brew Tiger Beer locally, thus growing the premium beer segment which is currently 80 percent dominated by the Heineken brand according to APB.

Tidying up the house

Singapore’s Asia Pacific Breweries Limited (APB), jointly owned by Heineken International and Fraser and Neave Limited, announced its intention to make an unconditional takeover offer for the purchase of the 23.09 percent of New Zealand brewer DB Breweries Limited (DB) that it does not already own. It was in 1991 that APB first bought into DB Breweries. In 1993 it raised its equity participation to 54.7 percent.
The offer price is NZD9.50 cash per share. This represents a 20.25 percent premium to the last trade of NZD7.90. The bid values DB at about NZD479 million (USD319 million). This means that APB is entitled to record a relevant interest of 85.25 percent in the capital of DB. The offer is being made
to enable APB to privatise and de-list DB...