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.

Carlsberg Breweries increases shareholding in Vietnam

Carlsberg Breweries reported that it acquired the Danish Industrialisation Fund for Developing Countries’ (IFU) shareholdings of 25% in South-East Asia Brewery Ltd. in Hanoi and 15 % in Hue Brewery Ltd. in the central Vietnam for a total of DKK95 million

Beer in the sticks

When at the end of June SABMiller announced that it had acquired a 29.6% stake in Harbin brewery group from its largest shareholder, China Enterprise Development Fund for USD87 million in cash, others must have been gnashing their teeth. SABMiller has pai

Kent brewery to close

Carlton and United Breweries (CUB), the Australian beer, leisure and spirits division of Foster’s Group announced that it expects to realise annual gross efficiency gains of up to AUD100 million within the next five years through the closure of the Kent B

More cash

At first it was only a rumour no one bothered to comment upon. Next it was denied outright. But on 12 August the Foster’s Group confirmed its plans to spin-off its Australian Leisure and Hospitality (ALH) division, comprising the group’s 131 hotel (i.e. p

Test the West. Are Russians the better capitalists? Faster than the Americans, the Russians will consolidate their beer market

They came, saw and conquered. And on a broad front too. Now Russian brewers are racing to snap up the best deals from under each others noses. At one time it would have been called redistribution, nowadays it’s consolidation.

Nineteen sixty-eight was a fateful year. In the USA both human rights activist Martin Luther King and Secretary of State for Justice Robert Kennedy were shot. Civil war broke out in Biafra. The Czech uprising in Prague rocked the Soviet regime but did not bring it down. In Europe and the USA students fought with the police. Long-haired types chanted "Ho Ho Ho Chi Minh". Decent folk quaked in fear of the Reds.) mind/."

The Beatles no longer exist, nor does the USSR. Hard to believe, but "Back in the USSR" is a party favourite, 35 years on.

Efes plans London IPO

Turkey’s major brewer Anadolu Efes plans an initial public offering (IPO) of its Efes Breweries International division (EBI) in London during the first half of 2004. That’s what Efes Beverage Group President Mukhtar Kent told delegates at the Renaissance Capital Equity Conference in Moscow at the beginning of June 2003. Kent was quoted as saying that the growth of the Efes Beverage Group’s (EBG) operations outside Turkey required an IPO for EBI (Efes’ international beer sales arm, in which EBG holds an 85% stake). EBI is likely to be listed in the first quarter of next year and up to 30% of its shares are expected to be in free float.
Efes expects the Turkish beer market, with 11 litres of beer per capita consumption, to grow at an average rate of 5 - 6% over the next five years.e..

Carlsberg to up its stake

Carlsberg Breweries A/S reported that it has started negotiations with Yasar Holding A.S to acquire the Yasar Group’s 12.1% stake in the brewer Türk Tuborg. When going to press, it seemed that the parties had come to a quick decision, leaving Carlsberg Breweries with 95.3% of the company. Any agreement is subject to approval by Turkish authorities. Carlsberg Breweries became the majority shareholder in July 2001 by acquiring 50.01% of the share capital and has since then increased its ownership share to 83.2% by means of increases in the share capital and public offers.