So much for a united Europe. The world’s number one brewer AB-InBev intends to kick out 10 percent of its workforce and the public response is: “Yeah, so what?”
Beer should be portrayed as a traditional and enjoyable beverage, suitable for many occasions, while targeting diverse consumer groups. It should also be portrayed as a beverage of value, made from natural ingredients, which requires lots of tender loving care all the way to the glass.
It was the Belgian news magazine Trends which reported on 12 January 2010 that Mr Beyens had joined StarBev, the former central European business unit of AB-InBev that covers nine countries (Bosnia Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia, and Slovakia) and represented a sales volume of 15 million hl in 2008.
Transferring operations from the Hateg brewery to Heineken’s main Romanian breweries was a business decision within the actual economic context in order to optimise production and to consolidate Heineken’s business in the long term, the brewer reported on 14 January 2010. This will lead to 98 job losses.
Blame it on the usual suspects – the economy, the weather, demographics – that 2009 was one of the worst years for the German on-trade. Radeberger Group (Jever, Radeberger) says that beverage turnover in pubs and restaurants was down in two-digit numbers. Radeberger Group itself saw volumes in the on-trade drop 7 percent.
An AB-InBev spokesperson said the brewer was struggling with the "structural decline of the beer market." Germany and Belgium seem to be affected most by the decline in consumption, which is why job losses in these two markets are expected to be highest.
As we enter 2010, the brewers’ grapevine is abuzz with predictions that this year will be rough for many yet rewarding for a few. Bankers are already rubbing their hands anticipating a resurgence in deal activity after a disappointing year in which mergers and acquisitions activity plummeted by almost half. The total value of deals in Europe fell to USD 682.5 billion in 2009 and a return to the heady, debt-fuelled days of 2007 is not expected for some time, if ever. During that year, Europe’s dealmakers worked themselves into a frenzy, registering USD 1,857 billion-worth of mergers and acquisitions, the best year on record since 1995, it was reported.
The German AB-InBev spokesperson did not want to comment on reports made by Inside publication that since November 2009 AB-InBev has tried to tempt wholesalers into stocking up on beer through too-good-to-be-true discounts on its major brands.
The deal will make Heineken the number two brewer world-wide by revenue (EUR 16.7 billion) and number three brewer by volume (203 million hl). Moreover, it will reduce its profit dependency on Western Europe to 35 percent (EBIT beia) from 41 percent and give it a more balanced portfolio of developed (60 percent EBIT) and emerging markets (40 percent EBIT).
Andri Thor Gudmundsson, CEO of Ölgerdin, complained that the tax had been badly crafted. Mr Gudmundsson reportedly said that it was unfair that a so-called sugar tax was levied on unsweetened fruit juices and sparkling water while chocolate milk, cocoa puffs and chocolate cereal were exempt from it.