Alone at home

At the end of May 2006, InBev announced that it would buy out its partner Efes and purchase Efes’ remaining shares (50%) in the Interbrew Efes Brewery joint-venture which they set up in 2000. As a consequence of this transaction, InBev will gain full ownership of Interbrew Efes Brewery S.A. The price expected to be paid by InBev is approx. EUR 20.8 million. The brewery, which Efes built in Ploesti north of Bucharest in 1998 at an estimated cost of USD 70 million, was turned into a joint-venture with Interbrew only two years later. Soon after, Efes began to cede operational control of the joint-venture to Interbrew, now InBev, which is why Efes’ retreat, so to speak, was a logical next step. In 2005, InBev, by its own account, had a market share of 16..

Pass me the Stoli

In May, Pernod Ricard and FKP Soyuzplodoimport, a Russian state-owned company which owns a host of Russian spirits brands, Stolichnaya, Moskovskaya, Pertsovka, Russkaya and Zubrovka among them, have announced that they have “entered into discussions regarding the future development of a number of selected Russian spirits brands, including the Stolichnaya vodka brand.” Push aside the corporate lingo and this can only mean that Pernod Ricard is interested in buying these brands. The brands had come into its distribution portfolio through the takeover of Allied Domecq last year. At present, Stoli is produced in the cities of Tambov and Kaliningrad with Russian grain and water but then sent to Latvia for bottling and packaging.....

Playing the export game

“The tide is high, but I’m holding on” run the lyrics to pop star Blondie’s hit from the 1980s. This aptly describes the record levels of Czech beer shipped abroad – and brewers’ efforts to tap into their country’s premium beer positioning says Lyle Frink in Prague.

Beer advertising – for insomniacs only

After the bill has made the rounds for almost two years, Russia’s President Vladimir Putin finally signed the controversial federal law “On advertising,” As expected, the new bill bans beer advertising on television from 7 am to 10 pm, and from 9 am to 12 pm on the radio. Advertisements during broadcasts of sporting events may include brands and company names but not actual images of alcoholic drinks.

Look, don’t touch

SABMiller has launched a USD 50 million global campaign for Peroni Nastro Azzurro in March 2005 that will incorporate a range of advertising and marketing initiatives based on an adaptation of Frederico Fellini’s 1960’s masterpiece La Dolce Vita, a movie that spurred a global affection for most things Italian – except beer. This is to change now thanks to SABMiller’s 18-month effort to underline the beer’s aspirations as a global premium brand. OK, the campaign is not strictly speaking global – it will focus on the U.K. followed by the U.S., South Africa and Romania..

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.