Not recommended for children

Australian and New Zealand ministers approved a new standard which allows energy drinks (or FCBs - Formulated Caffeinated Beverages) to be manufactured in Australia, whereas previously they had to be imported from New Zealand. It was decided that energy drinks such as V, Red Bull, Black Stallion, Ikon, Lipovitan, Red Eye Gold and Lift Plus, which contain up to 320mg of caffeine a litre, must carry a label saying: "this food contains caffeine" and the accompanying warning that "this food is not recommended for children, pregnant or lactating women and individuals sensitive to caffeine."
The standard took effect in August. The compulsory labelling is not expected to affect
the market for energy drinks adversely currently valued at A$150 million.".

Here they ride again

Just a month after Lion Nathan abandoned (or was forced to make do with a 44% stake) its protracted take-over bid for Montana Wines in New Zealand, the brewer turned round on its heels and made offers for two medium sized South Australian wine companies, Banksia and Petaluma. Lion Nathan offered to pay A$70.6 million for Banksia and A$222 million for Petaluma. Petaluma was listed in 1993 and owns South Australian, Victorian and Western Australian wineries as well as the Argyle Winery in Oregon, USA. Banksia was listed only 10 months ago. But lo and behold, who was also buying shares in Lion Nathan’s objects of desire? Well, British drinks giant Allied Domecq. At close of trade on 5 October Allied Domecq had 15% of shares in Banksia and was still buying shares in Petaluma..

Make your own wine

It was only a matter of time. Adelaide-based Coopers Brewery has recently launched a new home wine making kit in Canada. The company expects to have sales in this market of at least A$10m a year by 2006. Canada is the world’s largest home wine making market. Coopers’ wine kits are made from quality chardonnay and shiraz grapes. Coopers Brewery has more than 20 years of experience in the production of homebrew kits which it distributes all round the world.

Sign of the times

Clever marketing or they have developed a palate for wine. At the end of a hard day’s play, Australia’s Test cricketers can soon celebrate with a glass of Barossa Valley shiraz or a Clare Valley riesling. By all appearances, the days are gone that beer was the only tipple of choice of Australia’s finest Men in White. Beringer Blass Wine Estates, a division of the Foster’s Group, has signed a three-year deal to become the official wine sponsor of the Australian Cricket Board.

SAB buys second brewer

For US$17.6m, South African Breweries bought a second Indian brewer, MBL, or Mysore Breweries. The group, which is listed on the Bangalore Stock Exchange, operates two breweries with a combined capacity of 480 000 hl beer in Bangalore and Aurangabad. Both breweries employ a total of 250 people. Mysore’s leading brand is Knock Out, which, as it name indicates, has a high alcohol content of about 7% ABV. Last October, SAB bought Narang Brewery, near Lucknow in the state of Uttar Pradesh in the north of India. It is estimated that SAB’s share of the Indian beer market, which is highly fragmented and regional in character, will be in excess of 6%. In neighbouring China, SAB expects to brew 18.3m hl beer this year.

We heard you

For years, the Indian beer market has been pegged "the next Asian Klondike" as concerns growth potentials but that has been it. Having run in-to all kinds of trouble in China, international brewers stayed clear off entering the Indian beer market, apparently fear-ing another financial disaster.
When United Breweries, India’s number two brewer with a market share of almost 40%, offered to sell a 26% stake to a foreign bidder, the usual
suspects Anheuser-Busch, Carls-berg, Heineken, Interbrew, Kirin, Scottish&Newcastle and South African Breweries expressed interest.
Whether one of them will make a quick move is another thing.6m. United Breweries’ best selling brand is Kingfisher Lager which is sold in 25 countries..

We stay in

As part of a restructuring initiative, Korea’s Doosan Corp. sold its 45% stake in Oriental Brewery. The stake was sold to the Dutch investment company Hops Co-operative UA for US$429m. Doosan will keep a 5% stake in Oriental Brewery to make sure that Interbrew retains management control. Belgium’s Interbrew bought a 50% stake in 1998. Oriental is the second largest brewer in Korea with a market share of 47%. It produced 7.7m hl beer in 2000. Hite Brewery controls 53% of the market. Following the sale, Interbrew announced that the brewer had entered into a put and call agreement with Hops to secure the right to buy the 45% stake.

The long bye-bye

Lion Nathan is looking into options to boost capacity and make products other than beer at its Chinese breweries. After talks with potential brewing partners in China came to an end, Lion Nathan is assessing what to do with its operations which are running at only 30% of capacity. Lion Nathan’s operations in China represent an investment of US$121.9m and include an 80% stake in the Wuxi brewery and a wholly owned brewery in Suzhou, both located in the Yangtse River delta area. It also has an agreement with Germany’s Brauerei Beck to produce and sell Beck’s in China. It was in 1995 that Lion Nathan entered China. Lion Nathan’s Investor Relations Director, Warwick Bryan, was quoted as saying that China represented less than 10% of Lion Nathan’s total beer out put.1m hl in 2000, up 6.5%)..

Foster’s new logo

De gustibus non disputandum, or as the Roman would have said: "let’s not argue over matters of taste." The same could be said about Foster’s new logo which was revealed in July along with a name change. Adieu to Foster’s Brewing Group and welcome to Foster’s Group. The logo depicts three coloured glasses (to represent the group’s interests in beer, wine and drinks) and incorporates the words "Inspiring Global Enjoyment". The logo was designed by Sydney firm Lewis Kahn Staniford Landor. Foster’s Chief Executive Ted Kunkel was quoted as saying that the logo and its tagline aimed to get to the core of what Foster’s was really about..

New Belgian Beer Café in Sydney

Before the end of the year, the first new concept Belgian Beer Café will open in Sydney, providing beer drinkers "down under" with another opportunity to enjoy a Belgian Wit beer in a retro art deco ambience. There is already a Belgian Beer Café in Sydney. The new concept, according the Interbrew, will play on the theme of a typical 1900 brasserie, featuring large mirrors, brass ornaments, wooden tables and marble floors. The new Belgian Beer Cafe is to suggest a urban atmosphere. The first concept, which was launched by Interbrew and Créneau International Design in 1998, was built around the theme of a village café. Already 29 of these themed cafés have been opened around the world, all the way from Belgium to New Zealand.