Taking to the streets

It’s a symptom of a dire lack of business skills if a brewer’s only answer to falling beer consumption is laying people off and moving certain services to other – low-cost – countries. But that’s exactly what InBev is going to do. To make matters worse, InBev’s timing proved ill-chosen. You do not announce unpopular measures just weeks after you have paid an estimated EUR 31 million to three executives who got the sack. Repeat: you don’t. And while we are at it, sermonising that is, you do not announce the closure of a brewery shortly after you have released a staggering increase in profits and profitability. Sure, you may feel compelled to reach Anheuser-Busch’s benchmark profit margins, but try explaining that to your employees! You will not succeed..

Liaisons Dangereuses

You don’t have to be a prude to know that snuggling up to your chosen partner may lead to some serious hanky-panky – and ultimately to a march down the aisle (involuntarily). Let’s assume Anheuser-Busch and Heineken know what they are doing, having recently signed a licensing agreement that allows Heineken to brew, sell and distribute the U.S. firm’s flagship beer under the “Bud” trademark in Russia. Apparently, the cooperation between Anheuser-Busch and Heineken in Italy, which only came about because Anheuser-Busch’s erstwhile Italian partner Peroni was sold to its arch-rival SABMiller, must have proven agreeable to both parties that they decided to extend it to Russia. But why Heineken should be keen to sell Bud rather than its own Heineken brand in a market that is still expanding, is beyond many people’s comprehension.

No more hanky-panky

At the end of January 2006 SABMiller announced that its operating subsidiary Miller Brands will take back the control over the marketing and distribution of its international premium brands in the UK which include Peroni Nastro Azzurro, Pilsner Urquell, Miller Genuine Draft and Castle Lager.

No more hanky-panky

At the end of January 2006 SABMiller announced that its operating subsidiary Miller Brands will take back the control over the marketing and distribution of its international premium brands in the UK which include Peroni Nastro Azzurro, Pilsner Urquell, Miller Genuine Draft and Castle Lager.

Efes acquires Krasny Vostok

After a lengthy bidding, Efes bought one of Russia’s last independents, the Krasny Vostok brewery, thus beating a rival bid from SABMiller according to industry sources. Already last summer Russia media reported that Krasny Vostok was up for grabs, although the asking price – close to USD 1 billion – seemed steep.

Mamma mia!

Shortly before Christmas last year, Italy’s small privately owned brewers left their association in a huff according to sources familiar with the situation. It was not really a mass exodus. It was probably more of an “alora, we do not want to be in this any longer. Capisce? Buon giorno.” And off they went, closing the door behind them. Italy’s brewers’ association, AssoBirra, has always been a small affair: It represented Carlsberg Italia, Birra Forst, Hausbrandt, Heineken Italia, Birra Menabrea and Birra Peroni (owned by SABMiller). Incidentally, the big three brewers that control about 65 percent

Strange things do happen

Finally – Heineken managed to sell its Pedavena brewery to Birra Castello of Udine. No price was mentioned. The Pedavena brewery has been on the block for some time so it came as a surprise that Heineken managed to clinch a deal with Birra Castello (output: 500 000 hl estimated), a brewer not exactly renowned for its significant cash reserves. According to market observers, Birra Castello’s technical director left last year because there were not sufficient funds for urgent investments. Be it as it may, the Pedavena community heaved a sigh of relief because Birra Castello promised to save at least 20 jobs (Heineken employed 80 people there). In the mid-term, employment is to rise to 60 to 70 jobs.

Micropurchasing

Reader, be honest – did you know that you could do “micropurchasing”? Apparently, that’s what Heineken’s German joint-venture partner is doing. Mind you, they seem to splash out more than the standard USD 2500 per item which is the threshold of governmentally decreed micropurchasing.

It’s done

It all went according to plan. At the end of January 2006 Pernod Ricard and Fortune Brands finalised the transfer of the Allied Domecq brands, which they had jointly acquired in the split-up purchase of Allied Domecq last year, to Fortune Brands (notably Canadian Club, Courvoisier, Sauza, Maker’s Mark).

Fare thee well

The day after Christmas 2005 InBev announced the departure of its CEO John Brock (57). As his successor InBev introduced the Brazilian Carlos Brito (45), who to date had been InBev’s Zone President North-America.