Teimuraz Bolloev, 51, Baltika’s charismatic and colourful president of 13 years, handed in his resignation shortly before Christmas last year. His decision did not come as a surprise to Scottish & Newcastle that jointly owns Baltika with Carlsberg. While no one knows his plans for the future, it is not ruled out that as one of President Vladimir Putin’s close associates, Bolloev could take a high-level government job.
As early as September, in the wake of the Beslan hostage drama, when Chechen rebels, who were backed by Muslim militants, took more than 1,200 people hostage in this North Ossetian village, leaving several hundred dead, some Russian politicians tipped Bolloev to become North Ossetia’s next president. According to the Stepan Razin brewing company (St.0 to 1..

In January 2005 Heineken Russia and Diageo have announced that they would commence a partnership for the production and distribution of Guinness in Russia. From 1st of July 2005 Heineken Brewery LLC will become the authorized importer and distributor of Guinness and Kilkenny brands in Russia. Heineken will start local production of Guinness Foreign Extra Stout under license in St Petersburg before July 2005.
Guinness Foreign Extra Stout will be produced and sold in 0.5 litre cans and 0.5 litre bottles at the former Bravo brewery which Heineken bought in 2002. The acquisitions provided the company with a reported market share of 8.6 percent in Russia and strengthened its position as number three brewer on the Russian beer market. Heineken Russia is an employer of over 4,000 people..

British pubs enjoyed a sales boost of five million pints a day over the festive period, bringing total sold over the period to 270 million pints. Martin Information, London, reported that more than 15 million people visited a pub every week over the Christmas period. This is just as well as price discounting of beer by the grocers in the running-up to Christmas was at least as bad as the previous year. According to industry sources, Scottish & Newcastle, the UK beer market leader, generates a lower operating profit margin in November and December than any other time of the year.

Question: How do you top a living myth? Answer: By buying the brewery. Lucky are those who own a brewery by the name of Mythos and can convince themselves each day that a fresh Mythos out of a bottle is better than any old myth. Scottish & Newcastle, which bought 47 percent of the Greek brewery Mythos in 2002 has upped its stake to 68 percent at the end of last year. The consideration was modest: EUR4.8 million which values the brewery at EUR22.5 million. Mythos has 11 percent of the Greek market, which equates to an output of 0.5 million hl. Thus S&N has paid the equivalent of USD 59 per hl. This does not look expensive, especially as it translates into an enterprise value of 5.7 times EBITDA or 9.0 times EBIT. Beer consumption rose from 3.84 million hl in 1996 to 4..

At first glance, Usti nad Labem is an inauspicious home for the Czech Republic’s fastest growing brewery group, Drinks Union, writes Lyle Frink from Prague. The city - called Aussig during the times of the Austrian-Hungarian Empire - is a centre for chemical and machinery industries, with buildings wearing an ochre stain from nearby factories. The main brewery facility dates back over a hundred years. Inside the brewhouse, production is decidedly low-tech. Wort is boiled in a copper older than most employees and passes its first fermentation in traditional open square vats. Total production for 2004 is expected to hit 945,000 hl of beer.
The group is acquiring more than a domestic presence. Going abroad is driving volume growth, while domestic sales are increasing more slowly.s.

Food for thought

The market in pub food has been valued at GBP3.4 billion a year, according to figures from hospitality industry consultant Horizons. The report estimates that the 60,000 pubs in the UK are serving about 405 meals a week at an average cover price of GBP4.70 (EUR6.70)

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..