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Europe/Russia
SABMiller has reported a 4 percent increase in beer sales for the 11 months to the end of February this year. Its trading statement shows a further slowdown in the U.S. and an acceleration of the decline in Central America. In Europe results were mixed. The markets were concerned about a potential bid for Bavaria and Topvar in Slovakia as well as Altria selling its stake in SABMiller in June this year.
In the U.S. beer market, which contributes 25 percent to group EBIT, growth in Miller Lite slowed because of strong comparables to last year.
European lager volumes grew almost 5 percent, with strong results from Poland, Russia and Romania, offset in part by weaknesses in Italy, Hungary and Slovakia. This implies total volume decline of 5 percent..
Europe/Russia
Slovenia may pride itself for sitting on the sunny side of the Alps. However, for InBev this market has always been overshadowed by dark clouds. That’s why the ‘world’s premier brewer’ decided that it was better to beat a hasty retreat than to weather the storm that has been brewing in Slovenia ever since Interbrew entered the southern European market in 2001. In February, InBev announced the sale of its holding (41.32%) in Pivovarna Union (‘Union’) to Pivovarna Lasko (‘Lasko’) for a cash consideration of EUR 70.7 million.
InBev’s failure to secure control of the country’s number two brewer, Union, has since become a text book case of a botched Europeanisation process. The culprits are easy to make out: the Slovenian government and competition authorities..
Europe/Russia
Allied Domecq, the world’s number two spirits group, confirmed speculation that it was in talks about a takeover with Pernod Ricard of France and Fortune Brands of the U.S. to create the world’s largest spirits company. However, Pernod Ricard said that discussions are at an early stage. There can be no certainty that an offer for Allied Domecq will ultimately be forthcoming.
Allied has been dubbed the spirits industry’s perennial bride which caused its share price to double since 2003. But it was only in April this year that rumours about Allied befalling a fate similar to Seagram’s (in 2000 the USD 8.2 billion Seagram drinks portfolio was carved up between Pernod and Diageo), acquired some substance. Allied, the maker of Malibu rum and Beefeater gin, has a market value of USD 12.S.S.
Europe/Russia
Heineken has announced a new marketing drive and further cost cuts on the release of its 2004 results in February after net profit fell by a third and the Dutch brewer predicted a further decline this year.
The net profit missed market expectations, coming in at EUR 537 million.
The world’s number four brewer by volume and second-biggest beer importer in the United States admitted that earnings were down due to continued sluggish sales in key markets, dollar weakness against the euro and a goodwill charge for the underperforming Brazilian brewer Kaiser.
Heineken said it would invest EUR 100 million this year in marketing campaigns in the U.S. and western Europe, bringing total capital expenditure to EUR 850 million.
Heineken raised its dividend by 25 percent to 0..
Europe/Russia
What’s the Danish for ‘Damn it. Last year did not go well for us.’ That must have been on many Danish executives’ lips when Carlsberg posted a net profit for 2004 of DKK 477 million (EUR 64 million), nearly half that of 2003 at DKK 956 million."EBITDA fell to DKK 3.4 billion from DKK 3.6 billion in 2003. Net sales increased 4 percent to DKK 36 billion largely due to increased sales in Russia and Poland. However, in Sweden the situation was more than grim so that Carlsberg will now have to cut 200 jobs as a cost saving measure." The company blamed the unfavourable dollar exchange rate and the introduction of a ban on smoking in pubs in several European countries for the disappointing sales. Nevertheless, Carlsberg is still predicting a 15 percent rise in net profits for 2005.
Europe/Russia
The 30th International Congress of the European Brewery Convention will take place in the Czech from 14 to 19 May 2005 capital of Prague. The big breweries of the country will be hosting the technical visits. But there is even much more to Czech beer tradition and culture.
There are not many countries or nations around the world where beer means as much as it does to the Czechs. It’s a matter of history. Beer brewing has a long tradition here. The ancient Celts began brewing beer several thousand years ago and beer has been brewed from hops in what is now Prague since the year 993. It therefore comes as no surprise that the Czech Republic is the "Promised Land" for beer. Beer is such a sacred potion for the Czechs that its patron is no other than the famous patron of all Czechs, St. ..
Europe/Russia
There was a slight increase in the export of hops from the Czech Republic in 2004. Although the export of raw hops and pressed hops was lower than in previous years there was a rise in the exports of hop pellets. The largest part of hops went to Japan, this was followed by exports to Germany, Poland, Belgium, Great Britain, China, Russia, Slovakia, Finland, altogether the hops in 2004 went directly from the Czech Republic to 36 countries.
The imports of hop extract declined to 10 year low last year. Majority of hop pellets used by Czech breweries come from Czech hop production. Apart from the fine aroma SAAZ hops, Czech breweries also use other Czech hop varieties Sladek, Premiant, Bor and Agnus. Last year also a new aroma hop variety Harmonie was registered.
Europe/Russia
As of April this year, InBev will roll out Brahma globally - that is in more than 15 countries worldwide. According to InBev, the selling of Brahma outside of its Brazilian home market is expected to contribute EUR 30 million to InBev’s balance sheet by the end of 2007.
In a statement InBev says: ‘Rather than just a new brand, Brahma brings an entirely new experience and an exciting new attitude to the category. Its taste is light and refreshing, and has a clean and crisp finish with a papaya after-note. The curved bottle with embossed Brahma lettering gently and ergonomically fits into consumers’ hands. The design exudes modernity, sophistication, and creativity and the "Rio-Flash" colour of the Brahma brand block exudes all the passion and excitement wrapped up in Brazil.
Europe/Russia
Ah, the vagaries of politics: While the Slovenian competition watchdogs thought nothing of turning their beer market into a virtual monopoly, the UK’s Competition Commission decided that such things must be nipped in the bud. Hence they blocked Scottish & Newcastle and Carlsberg’s proposed deal to merge their Serviced Dispense Equipment technical services operation with Coors’ draught beer dispensing assets. According to local media reports, the Competition Commission feared the deal between the three brewers would have led to less competition, lower standards and higher prices.
Europe/Russia
Hark his words. According to John Brock, Chief Executive Officer of InBev, acquisitions in the beer markets of China, Russia and Latin America offer the highest growth potentials. This is not to say that InBev, the combination of Interbrew and AmBev, will neglect future takeover targets in mature markets. However, there has to be a strategic fit. A ‘land grab’ is not what Brock has in mind.
In 2004, western European beer markets contributed 32 percent to InBev’s EBITDA of EUR 2.1 billion, the United States 20 percent, central and eastern Europe 13 percent, Asia 8 percent and Latin America 22 percent. AmBev only began contributing to InBev’s accounts from September 2004 onwards. InBev’s turnover in 2004 was EUR 8.5 billion (+21.6%). In 2004 EBITDA margin was 24.6 percent (2003: 21. ..
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BRAUWELT on tour
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