Pernod Ricard completes integration of Allied Domecq

As early as the 2006/07 financial year, Pernod Ricard will benefit from the full EUR 270 million expected synergies in structure costs. That is a year earlier than initially planned.

Beer prices to go up in nine European countries

On a request by EU Governments, the Commission proposes to increase the minimum beer tax by 31 %. Europe’s brewers are concerned that this move will directly affect consumer prices in 9 European countries, including Germany, Luxembourg or the Czech Republic, and they do not believe that it is the solution to problems identified in a previous Commission report.

InBev adjusts global management structure

Following the recent increase of AmBev’s equity interest in Quilmes Industrial S.A. (“Quinsa”) to 91.18 percent, InBev has created a sixth corporate zone that will be known as Latin America South, according to a recent corporate statement. InBev’s existing zones are Latin America (to be renamed Latin America North), North America, Western Europe, Central and Eastern Europe, and Asia Pacific.

Building a new brewery

In August Heineken announced that its subsidiary Heineken España, S.A. has signed an agreement for the divestment of the land and buildings of the current brewery site in Seville. As the result of the sale Heineken will realise a book gain of 329 million EUR before tax in the second half of 2006, which will be treated as an exceptional item. The amount of the book gain after tax is 279 million EUR.

Where there is smoke …

… there is fire. So the saying goes. That’s why few are willing to believe that InBev Germany is not going to put its Diebels brewery on the block. For weeks Germany has been abuzz with speculation that InBev will offload the brewery which helped found its German division in 2001. In a statement, the head of InBev Germany, Roland Tobias, called the rumour “utter rubbish” but would not deny that the alt beer segment, headed by Diebels, is facing severe problems.

Heineken on the beach

The ways of the world are ever changing. What held true yesterday is old hat today. Perhaps the ways of the world are changing even faster at Heineken’s – and only we have not noticed. In August, two weeks before Heineken was to release its half-year results, the Dutch brewer laid on a bash for journalist. Local and foreign journos were invited to a beach party which was to be hosted by Heineken’s CFO, René Hooft Graafland. Ok, it is not all that usual that the chief financial officer gets his own press op. In fact, it is rather unusual.

Innovations galore

While the first beer in Guinness’ Brewhouse series, Brew 39, caused an outcry from Guinness lovers all over the world – even though only the Irish could sample the beer – Guinness’ follow-up, Toucan Brew barely raised an eyebrow.

Make mine a Heineken

This summer Heineken signed a sponsorship deal with the Chelsea football club, which entitles Heineken to pour its eponymous beer in all restaurants and bars at Stamford Bridge stadium until the end of the 2009/10 season. Heineken also sponsors the UEFA Champions League. However, this is the first time Heineken has sponsored a major European club side. Chelsea’s Business Affairs Director Paul Smith reportedly said: “Heineken is the premium beer brand in football and is therefore a natural partner for Chelsea. We are delighted that they have chosen us for their first major club involvement.”

It’s hot under the counter

The recent surge in extra-cold or super-chilled beers has caused many problems for publicans. Brewers must find a universal solution to the demand for

If industries were to follow textbook rules, consolidation in the hop industry should march on just to keep up pace with the brewing industry which is set to form ever larger units. However, were it not for the discrepancy between the hop trading companies’ high equity ratio (on average around 50 percent) and low EBITDA (about 2 percent), which prevents a straightforward valuation, the course of world would follow fiction. Alas, this is not to be and that is why Stephan Barth, hop trader and Managing Partner of Joh. Barth & Sohn in Nuremberg and one of the world’s leading hop marketers, at a recent press conference in Munich said that he expects no takeovers or mergers in his industry for the foreseeable future. “We are all family-owned. We are proud of our tradition. We do not give up easily”, he added.