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..

Expansion off

After years of strong growth, the Foster’s Group global expansion has been put on hold as conditions in the US wine market have proved tough and the rising Australian dollar has taken its toll. Foster’s reported a 17.5% drop in net profit for the 12 months to 30 June 2003 to AUD462.9 million. Second-half earnings collapsed 46% to AUD128 million.
Ted Kunkel, Foster’s CEO, also gave his strongest indication yet that Foster’s has shelved plans to take over wine giant Southcorp or other players in the wine industry. "With regards to this point, you may notice the de-emphasis on acquisition activity in the list of 2004 priorities," Kunkel was quoted as saying. The next financial year for the wine business would remain challenging..

Waxing lyrically

Brewer Boag’s of Tasmania has released a Honey Porter whose label could put many a verbose vintner to shame. Its back label reads: "No other style of beer is as mysterious and elusive as the Porter. First brewed in 1772 in London, the Porter quickly became the most popular beer in Britain. Whilst its popularity has faded over time, J Boag & Son’s master brewers have recreated this enigmatic style, adding our own unique Tasmanian ingredient. Boag’s Honey Porter is brewed using Tasmania’s Golden nectar leatherwood honey and is the first brew to have ever used the brand new aroma hop variety Van Diemen developed in Tasmania." The honey porter which is on limited release (sic) is sold in a 0.375 l bottle and has 5.5% Alc./Vol.