Living myth

Question: How do you top a living myth? Answer: By buying the brewery. Lucky are those who own a brewery by the name of Mythos and can convince themselves each day that a fresh Mythos out of a bottle is better than any old myth. Scottish & Newcastle, which bought 47 percent of the Greek brewery Mythos in 2002 has upped its stake to 68 percent at the end of last year. The consideration was modest: EUR4.8 million which values the brewery at EUR22.5 million. Mythos has 11 percent of the Greek market, which equates to an output of 0.5 million hl. Thus S&N has paid the equivalent of USD 59 per hl. This does not look expensive, especially as it translates into an enterprise value of 5.7 times EBITDA or 9.0 times EBIT. Beer consumption rose from 3.84 million hl in 1996 to 4..

Greeks are not big beer drinkers, consuming just 39 litres a year per person, as opposed to the EU average of 80 litres a year per head. Over 75 percent of beer is consumed between April and September when tourists hit the Greek beaches. But while beer consumption in Western European countries has been dipping slightly in recent years, the Greek market has grown an average of 3 percent per year between 1996 and 2001.38 million hl in 2001 according to local researchers at the Foundation for Economic and Industrial Research (IOBE).
The IOBE research indicates that just three lagers - Heineken, Amstel and Mythos - make up 90 percent of the beer sold on the Greek market. Athenian Brewery (Athinaiki Zithopoiia) holds 85 percent of the pie, as it produces both Heineken and Amstel domestically. It has brewed Amstel since 1963, Heineken since 1981 and - more recently - Fischer and Alpha beers.
Meanwhile, Mythos Brewery has made waves since introducing Mythos beer in 1997. In 2000/2001 Mythos doubled its share of the domestic beer market to 10 percent – at Athenian Brewery’s loss. Smaller players include the Hellenic Brewery of Atalanti, the newer Olympic Brewery (Fix Hellas beer) and the Brewery of Macedonia and Thrace (Vergina beer). In total there were seven major beer factories in Greece in 2001 employing some 1,800 people, says IOBE.
According to researchers, there is potential for growth in imports, despite the fact that domestic consumers are reluctant to try them. In the period covered by the study, 160 imported beers accounted for over 5 percent of total sales. Most Greek breweries also import beers. Meanwhile, the successful Thessaloniki-produced Mythos is looking to increase exports.