TV alcohol ban lifted

A commercial television network in the Outback has lifted a 17-year ban on alcohol advertising, writes John Harvey from Adelaide, which was imposed to help fight drink abuse in Aboriginal communities. Imparia TV said that it would donate 30 percent of profits from alcohol advertising to substance abuse education programmes in remote communities. This decision has caused much angst among the anti-alcohol lobbyists. They are currently agitating for the federal government to exercise its influence on the commercial TV network to re-impose the ban.

Who will it be?

In February Foster’s announced that President and CEO, Ted Kunkel, will step down before the end of the calendar year 2004. With no more spectacular take-overs in the offing, Ted Kunkel probably thought that now was the best time to retire. According to a corporate announcement, Foster’s is already looking at both internal and external candidates to succeed Mr Kunkel. Kunkel has been at Foster’s helm for the past 12 years, steering the company through many troubled waters. When he joined the brewer in March 1992 the group was facing considerable upheaval and had a seriously impaired balance sheet with high debt and gearing. Today Foster’s has a market capitalisation in excess of AUD 9 billion, a BBB+ credit rating, low gearing and is established as a premium branded beverage company..

Don’t miss the boat

As their domestic market has become saturated, Japanese brewers are looking more and more at overseas markets as a new revenue source. Suntory, which built its first brewery in Shanghai in 1996, currently operates three breweries in the coastal area of China, but hopes to acquire more breweries further inland in an effort to boost its beer sales in the country to 5 million hl by 2006, up 70 percent from last year.

We fight them on the beaches

It was drinks all round at Peter Lehmann Wines after British drinks concern Allied Domecq dropped its take-over bid for the Barossa Valley wine company. This cleared the path for the preferred contender, the Swiss family-owned Hess Holding AG to close on its AUD149 million offer (EUR90 m). Hess, with its interest in wineries and mineral water brands, is considered a more friendly raider than Allied Domecq because the Swiss are believed to keep the company as it is: a 600,000-case-a-year winery.

Shop-A-Holics Anonymous

What’s the cure for those who shop until they drop?
Usually, a huge bank overdraft. However, that’s where the analogy between us and them, big business that is, ends. What does Foster’s do now that acquisitions are off the agenda and wine margins get eroded in the important North American market? Well, the drinks group is buying back shares. The Foster’s Group Limited (Foster’s) announced an off-market buy-back tender of between AUD 700 million and AUD900 million (approximately 6.5 percent to 8.5 percent of Foster’s issued capital), subject to the buy-back price. It is Foster’s third buy-back in recent months, taking the total to be returned to shareholders to about AUD1.6 billion (EUR967 m). What’s he to do? I think we should be told..

"A new step forward every year" or "Standstill is a step backward". Obolon, number 1 in the Ukraine, impresses by innovation

Extending over 603,700 km2, the Ukraine is area-wise the largest state in Europe. The country whose national language, the pride of the nation, is Ukrainian, borders in the east and north on Russia and on Belarus. On the western side, the neighbouring states are Poland, Slovakia and Hungary, in the south Romania and Moldavia. The Ukraine has 48.4 million inhabitants. 2.6 million live in the capital Kiev. The Ukraine has been a sovereign state since 1991, detached from the Russian Federation. During this time, a new economic identity has developed. Probably one of the most impressive examples of the runaway economic success is in the brewing sector: Obolon.

Owned by staff

The brewery was established in 1980. As of 1993, Obolon has been a private limited company. 1.
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Tax hike on Alcopops

As the ban to sell Alcopops to youngsters seems to have failed, the Swiss parliament has passed a law to raise the tax on Alcopops by some 300%. That’s four times the tax rate on spirits. The Swiss define Alcopops as a softdrink mixed with alcohol with an alcohol content of between 5% and 6%. The tax increase will result in a SF1.80 (USD1.40/EUR1.20) tax on every 0.275 l Alcopop bottle. Currently a bottle sells at SF2.50 (EUR1.60). The tax hike is designed to reduce the consumption of these products among young consumers. Alcopop consumption is reported to have risen steeply in Switzerland from 28 million bottles in 2001 to 40 million bottles in 2002.

Recovering from the crisis

As most countries in Southeast Asia continue to recover from the 1997 monetary crisis, consumption of beer in the region goes from strength to strength. According to a report by Canadean, total beer consumption rose over 6% in 2002 – easily the best performance since the crisis took hold. However, beware of averages. As the region encompasses numerous national markets that are spread around the Asia Pacific Rim consumption patterns differ noticeable from country to country.
Imports have been readily accepted in Taiwan since the ban on beer imports was lifted in 1987. They increased by an astonishing 46% during 2002. 26% of all beer consumed in Taiwan is now imported (the region’s average: 4%). Many of the restrictions on advertising alcoholic drinks have been lifted..

Super scam

Asia-Pacific Breweries Ltd (APB) has reportedly been slapped with undisclosed claims from German, Swedish and Japanese banks after one of the brewer’s executives was charged with opening and operating bank accounts in the name of Asia Pacific Breweries (Singapore) Pte Ltd without authority and defrauding them of an estimated USD69 million. If the alleged fraudster is found guilty, the case will be the largest case of fraud carried out by a staff member of a Singapore company.
For several weeks now, the brewer of Singapore’s popular Tiger brand beer has been at the centre of a scandal which involves its finance manager Chia Teck Leng who was suspended from his job after he had been charged with (so far) 32 counts of fraudulently obtaining loans. APB, which is 42..

Entering the dragon's lair

China is not only the largest beer market and one of the world’s fastest growing markets. It is also the brewers’ litmus test of their emerging market business models, says WestLB Panmure, London, in a recent market report. So far - and by all accounts - only SABMiller generates positive EBIT. Despite this, many European brewers, with the exception of Scottish & Newcastle and Heineken, which is promising an investment soon, have made acquisitions in China during the first six months this year. In the first half of 2003 they have spent USD480 million for a piece of the action - or 92% of the industry’s total acquisition value. Total foreign investment amounts to over USD1 billion. These factors indicate to them that beer demand could grow by up to 8% annually by 2007.27/litre).5 million.K..