While other international brewers would be more than happy to steamboat out of China, South African Breweries (SAB) has gradually increased its market presence there. Last month SAB’s joint venture vehicle, China Resources Breweries (a joint venture with the government-owned and stock-market listed China Resources), formed a joint venture with Blue Sword Breweries, which is based in the province of Sichuan, to the southwest of the country.
The deal not only brings the total number of China Resources Breweries’ plants up to 25, it also makes the new joint venture the second largest brewer in China with a production of 25 million hl of beer. SAB’s contribution in cash was about US$26 million for its 49 percent stake in the investment. US$ 2.4 million hl..

The BBH subsidiary Baltika Brewery has entered an agreement to acquire majority shareholding of the brewery Krinitsa situated in Minsk, Belarus. As part of the privatisation process, the Board of Directors of Krinitsa will approve the agreement formally in December. The present capacity of Krinitsa is 700,000 hl of beer annually and the brewery is the market leader with a market share of approx. 21 percent. The first phase of modernisation of the brewery, which will be completed next spring, is intended to bring the brewery’s quality of beer up to Western standards. Belarus has a population of 10.2 million people and per capita consumption of beer is 26 l. Over the past few years, the Belarus beer market has seen a moderate increase and total consumption is 2.7 million hl.

Determined to get its foot in the door of the Australian wine industry, albeit with the help of a A$300 million wedge, Lion Nathan appears to have successfully completed the Petaluma wine company deal after increasing its offer per share. Five weeks after opening its bid, Lion Nathan had secured more than 90 percent of the shares of the premium wine group Petaluma. Its chase of fellow South Australian wine company Banksia seems to have been successful too as rival bidder Allied Domecq failed to increase its 15 percent stake.

Some have a vision, others a dream, but Foster’s has a plan. Ted Kunkel, CEO of the Foster’s Group, outlined a plan to double the group’s market value from presently A$11 billion to A$20 billion within the next five years. This should take the drinks company from being a mid-sized player to a global player competing with the likes of Diageo. How does he see it happening? By using the wads of cash thrown up by Foster’s beer division to fuel organic and acquisitive growth in its wine operations. Kunkel was quoted as saying that the A$2.9 billion acquisition of the US wine company Beringer Wine Estates had solved Foster’s growth impasse. "There are 19 million people here (in Australia) - we could only grow so much," he said. Major take-over targets were sought in the US and in Europe.

... Or keep a bottle of your favourite beer in your fridge. For those consumers who cannot remember the street address of their brewery of choice, Adelaide’s brewers have the answer. First the West End Brewery (owned by Lion Nathan) came out with a beer called "107 Pilsener", named after its location at 107 Port Road (see the previous issue of "Brauwelt International"). Now it seems that Cooper’s too is considering releasing a beer called "Regency 416" in honour of its new home at 416 South Road, Regency Park. So there is hope at hand for all consumers troubled by senior moments.

On 21 November, the Hon Rob Kerin, Premier of South Australia, officially opened Cooper’s new A$33.5 million brewery at Regency Park, a northern suburb of Adelaide. About 150 guests, among them IGB president Adrian Gardner and many other members, attended the ceremony which featured short addresses by brewing director Tim Cooper and his father, managing director Bill Cooper. Following the opening, Cooper’s renowned hospitality was enjoyed by all present. Guests were given memento plaques made from jarrah timber fermenting vats, which were used at Cooper’s Leabrook brewery from 1945 to 1988.
Australia’s best-known family brewer was established in 1862 and for 120 years brewing was conducted at Leabrook in Adelaide’s eastern suburbs..

West End Brewing Co, Lion Nathan’s South Australian beer company, launched a new Pilsener in October, brewed with hops from Bohemia. 007, 101, 107 ...why the mysterious label? It may be mysterious to the rest of the world, but every punter in Adelaide knows that West End’s address is 107 Port Road Thebarton. There you go.

Terry Davis, head of the international wine division of the Foster’s Group, is to be appointed Managing Director of Coca-Cola Amatil. In 14 years in the wine business he built Cellarmasters into the world’s second largest wine club business. Rumour had it that he was the frontrunner in the race to replace Foster’s CEO, Ted Kunkel.

Carlton and United Breweries (CUB), a division of the Foster’s Group, has purchased the spirits brands portfolio of Tarac Liquor Marketers for just over A$2.2 million. Brands include a vodka, bourbon and scotch brand. James King, Managing Director of CUB, said in a press release that this purchase would enhance CUB’s spirits arm, The Continental Spirits Company, and allow the company to build its sales and marketing activities throughout Australia.

If you saw the Kiwis chuggallugging their beer steins at the Munich Oktoberfest you would not have thought that back home they have taken to sipping their beer. Beer consumption in New Zealand has witnessed a steady decline over the past ten years. According to market research by Canadean, per capita consumption in New Zealand is now 15% lower than in the 1990s. Domestic production has fallen while imports have almost doubled in the past six years as consumers are purchasing lower volumes but demanding greater choice. In 2000, beer consumption was 3.2 million hl, for 2001 it is expected to decline to 3.15 million hl.
New Zealand’s two main brewers - Lion Nathan (52%) and Dominion Breweries (34%) - are attempting to adapt to the shrinking market..