Hungry Wolves

At the beginning of December, Wolverhampton and Dudley Breweries revealed plans to buy the Burtonwood pub estate for GBP119.9 million (EUR 172 million). According to Martin Information, London, Burtonwood’s and Wolves’ estates represented a good geographic fit, taking Wolves’ total number of properties to over 2,000. This is Wolves’ second major takeover deal since it completed a GBP150 million refinancing in March to give it a war
chest for buying pubs. In June Wolves paid GBP89.9 million (EUR130 million) to buy the 63-strong estate of Wizard Inns from Japan’s Nomura Bank.
The announcement of the Burtonwood acquisition came as Wolves reported a 6.3 percent increase in full-year pre-tax profits to GBP77.7 million, at the mid-range of forecasts. Turnover was up 4..

Here we go again

Either the armchair strategists have been bored out of their minds or they have indeed picked up some rumour - whatever the case, Scottish & Newcastle has again been in the news as a potential take-over target. Why S&N? Because it enjoys market leadership positions in Russia, the UK, Finland, and France. Moreover, it is the number 2 brewer in the Ukraine and Portugal, and has small stakes in the Indian and Chinese beer markets (where it is looking to expand). Prospective buyers have been named too: SABMiller and Anheuser-Busch. If SABMiller were to buy S&N, it would dilute its Rand based earnings further. Anheuser-Busch, on the other hand, would broaden its UK and European shareholder base and improve its UK position, plus enjoy the benefits
of a European distribution platform..

The fate of a classic

Just because the lifestyle gurus at the magazine Wallpaper have included Sweden’s Pommac brand in its annual list of favourite products, has not persuaded Swedes to buy the product. They may love the soft-drink alternative to sparkling wine - but unfortunately not at the till. Following another drop in sales, Carlsberg Sweden has announced that it would in future limit the sale of the classic Swedish soft-drink to national holidays. That’s when it would be sold in large Magnum bottles to mark the occasion. Carlsberg Sweden has also signalled that it was now gearing up for another round of redundancies before the end of the financial year that will see 200 employees go (out of 2,000) and the group take an exceptional charge of DKK100 million (EUR13.5 million)..

Consumers toast defeat of public beer ban

In an unexpected move, Russia’s Federation Council, the upper house of the Russian parliament, turned down a bill at the beginning of November that would have restricted the advertising and the sale of beer. 73 members of the Federation Council voted against the bill, which was passed by the Duma in August this year and which would have banned drinking beer in public - on the street, in sports’ stadiums, in parks, on public transport, in schools, and in hospitals. The sale of beer to children younger than 18 would also have been outlawed and a fine of EUR3 imposed on transgressors. The ban was supposed to accompany tough new restrictions on the advertising of beer on television and was due to come into effect in 2005. However, the process is not over yet..

I spy with my little eyes

To alert its consumers to its responsible consumption website, Heineken N.V. announced that it will start including a message on all Heineken brand bottles and cans worldwide which will invite consumers to visit this newly developed website. The combination of label and website is unique and is one of many initiatives on promoting responsible alcohol consumption developed by Heineken during the past few years. Heineken hopes that the separate website reminds and educates consumers about the effects of consuming alcohol, drinking patterns and consumption guidelines. It also includes useful links to other relevant websites. The back label of Heineken bottles and cans will contain the message "Please visit EnjoyHeinekenResponsibly.com"..

For a little bit of happiness

Efes is to invest USD10 million in its Moldovan brewery in 2005. This is more than twice the sum the Turkish brewer spent on upgrading and modernising the brewery in 2003/2004. In 2003 Efes Vitanta is said to have sales in the order of USD25 million which were expected to increase 20 percent in 2004. In 2002 Efes had acquired the leading Moldovan beer and beverage group Vitanta Intravest S.A. whose brewery is located in Chisinau. The Moldovan beer market, with total consumption of around 400,000 hl and a per capita consumption of 9 litres, is considered one the fastest growing beer markets in Europe, while the country itself is in a pickle. With only 4.4 million people, its market is too small to lure foreign investors. The average wage is USD70 a month..

Consolidation to continue

As expected by market observers, Heineken N.V. announced at the end of November that Brau Holding International AG, its German joint-venture between with Schörghuber Corporate Group, had come to an agreement to acquire 100 percent of the shares of Hoepfner brewery, Karls-ruhe in southwest Germany. The transaction is subject to regulatory approval. Commenting on the deal, Jean Francois van Boxmeer, member of the Executive Board of Heineken N.V. said: "Hoepfner together with the recent acquisition of the Fürstlich Fürstenbergische Brewery strengthens BHI’s position in the key Baden Württemberg region in Southern Germany." The Hoepfner brewery, which sold 200,000 hl of beer in 2003, was privately owned.
As agreed by both parties the acquisition price will not be published..

French paradox

In October, French deputies voted for an amendment that will make the "Loi Evin", which severely restricts advertising and promotion on all alcoholic drinks in France, more flexible. But only for wine, that is. Under the amendment, which was passed by 102 votes to 12, ads and promotions for appellation contrôlée and vins de pays wines will be able to mention quality, where the wines came from and the grape variety, as long as moderate consumption is encouraged. However, any mention of the taste and aromas of a wine will not be permitted. This will also apply to spirits that can show clear geographical origins. The French government has been caught by strong pressure from the French wine industry, increasingly concerned by falling sales, both at home and abroad..

See you again in court

In November, the European Court of Justice on Tuesday batted questions about whether the name Budweiser could be used by two competing brewers back to Finland’s national court. The ruling by the European Union’s highest court is the latest round in top U.S. brewer Anheuser-Busch’s century-long dispute with state-owned Czech rival Budejovicky Budvar over the rights to the Budweiser and Bud brands. In this case, which was referred to the ECJ from Fin-land’s Supreme Court, Anheus-er-Busch claimed that customers could confuse its own Budweiser trade mark with Budvar’s use of the name, derived from its place of origin. Budvar countered that its trade name was registered and protected under international law. However, it was struck off the Finnish commercial register in 1984 for lack of use..

Focus on new plants: Radomyshl brewery, UkraineGerman equipment and technology for world’s best weizenbier

In 2004, Radomyshl brewery’s Pshenychne Etalon brand of weizenbier was awarded two prizes. Pshenychne Etalon brand Weizenbier now enjoys widest possible acceptance among beer experts.

The world’s best weizenbier - brewed in Ukraine. Anyone making such a comment less than six months ago would have been dismissed as a dreamer, someone out of touch with the world, or simply one of those who consider themselves beer experts without actually knowing what they are talking about. Things have changed, however. A beer connoisseur today is one who has a high regard for Ukrainian weizenbier. The experts now agree: It was not without reason that Radomyshl brewery’s Pshenychne Etalon brand of weizenbier was awarded two prizes. Petersburg. ...