Carlton Special Beverage’s "Sub Zero" has re-invented itself with the launch of a pink grapefruit flavoured Sub Zero. Claiming to combine the tang of a pink grapefruit with triple distilled vodka, the new Sub Zero is cashing in on the current popularity of vodka with the 18-24 crowd. Visit www.subzero.com.au

... did they call it a "Killer Bitter"? SA Brewing, part of Lion Nathan, has increased the bitterness of its Southwark Bitter brand to 25 IBU. But what possessed them to call it a "Killer"? We should be told.

Australasian brewer Lion Nathan was able to lift net profit after tax 16% to A$89m (US$46.3m) in the six months to 31 March 2001. Profits would have been even higher had it not been for a A$12.9m loss in its Chinese operations. Lion Nathan China reduced its losses by 33% but is still far from breaking even. Half-year sales for the group were A$795.5m (US$413.7m), up 2%.

And you thought that the days of the Wild West were truly over? But not in New Zealand if you have been following the saga of embattled wine company Montana. Unbeknown to Lion Nathan, Montana Group chairman Peter Masfen sold his stake in the company to Allied Domecq while negotiating a sale with Lion Nathan. Is it a case of double crossing or tit for tat? After all it was Lion Nathan that supposedly breached New Zealand Stock Exchange (NZSE) rules in February when it bought a huge chunk of Montana’s share in a NZ$1 bn (US$421m) takeover battle. On 25 May, Lion Nathan held 62% of Montana, Allied Domecq, the world’s second largest drinks group, 26.7%. Allied’s deal with Masfen means that Allied can now block any major transactions planned by Lion as this would require a 75% shareholder vote.

Do they have no mercy or are they in league with sunglass-manufacturers? Japanese brewers Asahi and Kirin are currently blitzing consumers with a "red storm" (Asahi) and a "blue lightning" (Kirin) marketing campaign in support of their respective happoshu low-malt brands. While they are turning cooler cabinets red and blue, Japan’s brewers are intensifying their efforts to expand their lines of RTD (ready to drink) alcoholic beverages by rolling out a chuhai, an alcoholic drink mixed with carbonated fruit juices. Asahi is said to be the first one launching a chuhai. Kirin is expected to follow suit in July with a similar product.

At the company’s annual meeting on 28 May, Foster’s Brewing Group voted to drop "Brewing" from its name and become Foster’s Group, a move which is supposed to reflect Foster’s move into other businesses such as wine and gambling. To make a point, Foster’s, through Beringer Blass, bought 51% of premium New Zealand winery Matua Valley Wines for A$9.3m (US$4.8m). Auckland-based Matua is one of New Zealand’s top six producers with a A$10m turnover of 135,000 cases last year, 35 % of which were exported. By 2003 Foster’s expects wine earnings to overtake those from beer. Beer now provides 60% of earnings and wine 40%.

Maxim - does the name ring a bell? If not, than you don’t read what’s available on your news-agent’s top shelves. Maxim is one of the best selling men’s magazine’s in the US, the UK and now Germany too. Maxim is for men who want more out
of life than "beer, balls and
boobs." Could it be a coincidence that Lion Nathan’s latest beer to be launched in Australia in May is called -Tooheys
Maxim", a low joule beer? If it isn’t, does this mean that real men don’t eat quiche but do drink low joule beer? Interesting market research results.
To all appearances Lion Nathan came up with Tooheys Maxim after it had delved into its recipe book and reformulated a brew first released as "Longbrew" in the mid 1990s. But, this is purely based on guesswork. n.

Australian brewers and consumers won a major battle when the Howard Government and the Australian Democrats agreed to back down on excise.
The deal ended months of wrangling over the price of draught beer after the introduction of the Goods and
Services tax (GST) last July. Draught beer had risen as much as 11 % in price, sparkling accusations that the Howard Government had broken a key election promise that beer prices would increase only minimally under the GST. Under the new agreement, the price of a glass of beer (285ml) dropped 10c. Immediately, consumers were encouraged to "dob in a pub" if they believed the tax cut on beer had not been passed on over the bar. It found that 55 % had
not passed on the reduction..

Since April 1993, the Carlsberg Brewery in Bang Ban, Thailand, has extended now to a capacity of 5 million hl/year of beer and 2 million hl/year of water (soda water and table water).

Beer consumption is growing strongly in India with real growth in volume estimated at 20% per annum and some forecasts expecting it to increase faster - at up to 30%. Yet consumption is still relatively low by international standards (at only 0.6 l per head per annum) - seemingly still offering huge potential. The rapid growth of the market is driven by a rising population - of whom around 50% are below the age of 35 - increasing affluence and developing aspirations amongst a burgeoning middle class. This contrasts with images of India as a poor country, which can be highly misleading. Whilst there is undoubtedly terrible poverty, India is also the World’s fifth largest economy (in terms of purchasing power parity) and GDP is growing by over 5% per annum in real terms. There is a highly educated population with a long tradition of entrepreneurial flair and a sophisticated manufacturing sector of the economy. Despite a colourful and disputatious political life, the country is, nonetheless, a stable democracy where the rule of law is upheld. The result of these factors is an exciting business environment offering enormous opportunity.

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