Bottoms up for the EU

Czech brewers greeted the accession into the European Union with half a litre of cautious optimism writes Lyle Frink in Prague. Accession into the EU had already led to Value-Added Taxes on gastronomy services being hiked from 5 percent to 19 percent, to say nothing about increased sanitary standards for pubs and restaurants. But beyond the internal preparations, EU membership lowered customs barriers for outward sales. And in the Czech Republic, where beer exports make up about 9 percent of all production, access to outside markets is crucial.

Nearby markets of "E-10" members

"We think this will open the gate to more exports," said Jan Vesely, head of the Czech Association of Brewers.
Just the rate alone fails to explain the difficulties faced by importers. ...

North Star: Merlin brewhouse from Hartwall defines new standards

The Finnish Hartwall Group consistently chooses the latest technologies for its brewing site in Lahti. This applies equally to the production, the filling plant and the warehouse. The brewhouse in particular reflects this philosophy and defines new standards for wort boiling. This article reports on the experiences made with this largest Merlin brewhouse in Europe up to now.

The heart of the plant, with its diameter of eight metres, is the largest Merlin® in Europe up to now. Merlin would make it possible to achieve the highest wort qualities with merely about half the energy consumption of a conventional boiling plant, forecast Jorma Rasi, responsible at Hartwall for the area Research and Development, on the occasion of the awarding of the contract...

Storm in a beer mug The Football World Cup 2006 in Germany - without Budweiser

Football - arentyousickofit? Despite all the hype and the hyperbole, England did not make it past the quarter finals at Euro 2004. However, England’s troubles pale next to Anheuser-Busch’s at the Football World Cup 2006. Budweiser has been banned from appearing in Germany at the World Cup in 2006, even though Anheuser-Busch is one of the main sponsors of the event.

It has not been a good summer for Bavarian brewers: a decline in beer consumption, an advancing army of foreign brewers and, to make matters worse, a hostile weather god. Now this is the final straw. Not one drop of Bavarian beer will be served in the brand new Allianz-Arena in Munich during the 2006 Football World Cup. Instead the beer will be provided
by the American brewer Anheuser-Busch...

Politics and money

Let’s hope the executives at Interbrew knew what they were doing when they announced their plans to close down the Belfast brewery, the former Bass Ireland’s Ulster Brewery, if no buyer can be found by September. Should this be the case, production will cease in Northern Ireland, taking with it at least 80 jobs and, as some media say, "ripping out the heart of a community".
The leader of the Sinn Fein, Gerry Adams, has put his case to the taoiseach (the head of the Irish government), who was said to have intervened on the brewery’s behalf. Union leaders at the Belfast plant will consider a boycott of Bass and other Interbrew products if the production line closes.
Opened in 1897, the brewery is a piece of Belfast history. Now tell this to the Irish..

Real men don’t drink RTDs

Discerning drinkers (who they?) seem to be losing their taste for RTDs or FABs because they are seen as "too girly" and "too mainstream" according to market research firm Datamonitor. A new report from Datamonitor reveals that flavoured alcoholic drinks’ (FABs) explosive growth is finally running out of steam.
The UK is still Europe’s largest market, worth GBP1.4 billion (USD2.6 billion), but in 2003 the market experienced a volume growth of only 6.3 percent, compared to 19.3 per-
cent in 2001 says Datamonitor. Young drinkers (18-24 year-olds), who account for 41 percent of total sales value, are losing their taste for the sweet fizzy drinks. Datamonitor forecasts FAB’s sales to decrease by 23 percent to GBP1.1 billion in 2008.8 to EUR0..

Heineken acquires two Volga breweries

Heineken may have been a late-comer to the Russian market, but this does not mean that all’s been settled and done. In such a vast market, even mid-tier brewers hold some appeal and it is among those brewers that Heineken has sought its growth opportunities. Heineken N.V. announced that it plans to take over 100 percent of the Russian group Central European Brewing Company (CEBCO), the major shareholder of which was the Russian dairy to fruit juice group, Wimm-Bill-Dann Foods.
CEBCO was set up in 2001 by Wimm-Bill-Dann with the aim of turning it into a strong player in the national beer market.
Prior to the Heineken deal, CEBCO reorganised its structure and registered both the Moscow and Vladivostok brewery under another company. No price was mentioned.0 million hl of beer and 0.

Get out of my SUN

Interbrew and SUN Trade, the controlling shareholders of SUN Interbrew Ltd, a beer and beverage company operating in Russia and the Ukraine,
announced that they have reached an agreement whereby Interbrew will acquire SUN Trade’s voting and economic interests in SUN Interbrew.
The deal amounts to EUR530 million said Interbrew and will be financed by Interbrew issuing new shares.
Upon completion Interbrew will own 75.5 percent of the voting shares and 96.1 percent of the non-voting shares in SUN Interbrew which in total gives it a 91.2 percent economic interest in SUN Interbrew. SUN Trade and its affiliates will hold approx. 3.4 percent of Interbrew’s enlarged issued share capital following the closing of the AmBev transaction. In July, Alfa had bought 10.8x 2003 EBITDA..

Duma bans beer ads

Russia’s lower house of parliament, the Duma, overwhelmingly approved of a law on 5 August that will ban beer advertising on television between 7am and 10pm because of growing concerns over the number of children who have become addicted to alcohol. The new law also prohibits the use in adverts of people, animals or cartoon figures, and messages that suggest beer will help you achieve your goals, improve your health or mental capacity or quench your thirst. In addition, beer advertising will be banned on the front
and back covers of newspapers and magazines. The law also applies to outdoor advertising within 100 metres of hospi-
tals, schools, sporting arenas and cultural institutions.
The UK’s Guardian newspaper has cited figures that some 2..

Red pen in action

Austrian brewer Brau Union, which is part of Heineken, announced the closure of its loss-making Polish unit, Brau Union Polska, which means that one brewery will be shut down (Warsaw) and the other one integrated into Heineken’s Zywiec group. Brau Union Polska, operating in Poland since 2000, has never turned a profit. Its losses currently stand at PLN100 million according to local sources. After the closure of one brewery, the production of Brau Union’s Krolewskie brand of beer will be transferred to Grupa Zywiec’s Warka brewery outside of Warsaw.
Grupa Zywiec and Brau Union Polska together boasted a 37 percent share of Poland’s beer market after the first three months of 2004, little changed from their market share of 37.3 percent at the end of 2003.6 percent in 2003.7 percent..

Debt reduced sooner than expected

In its H1 financial statement Carlsberg reported the reduction of interest-bearing debt following the purchase of Germany’s Holsten Brewery and Orkla’s stake in Carlsberg. Debt is said to have been reduced by DKK5.6 billion to DKK23.4 billion (USD3.8 billion) thanks to
a combination of cost-cutting measures and the disposal of real estate assets. Although marketing costs in the first half were up DKK250 million on last year, reaching DKK1.2 billion (USD199 million), Carlsberg now expects to deliver a full-year net income of between DKK1.5 and 1.6 billion, helped by a lower tax charge in the UK and Russia.
Operating profit for total beverages during the first half was DKK1.1 billion (USD183 million). Western Europe delivered EBITA of DKK831 million, which was below expectations..