BRAU Beviale 2003 - Forum for investment decisions. Return to Europe: EU enlargement opens up new markets and holds economic challenges for the beverage industry

A trend already clearly noticeable at previous exhibitions increased at BRAU Beviale 2002: Encouragingly large numbers of visitors from the Czech Republic, Russia, Poland and Hungary caused particularly the German beverage technology manufacturers - the strongly export-orientated world market leaders - to beam all over their faces. The next opportunity for the around 1,500 exhibitors and good 36,000 visitors to refresh these contacts and meet new business partners is at BRAU Beviale 2003 from 12 - 14 November in the Exhibition Centre Nuremberg.

Europe has undergone fundamental changes in the past decade. The collapse of the Soviet Union and the end of the cold war was the coup de grâce for the old geopolitical system.6 milliard EUR.5 % a year between 1998 and 2002.2 %. .. The ma.

A la Belge - Or: The resistible rise of the Belgian brewer Interbrew

Ever bigger, ever faster, ever further. The 1990s were the decade of globalisation. The thrill of a new challenge, the faith in progress and the euphoria of expansion were experienced the world over. In the brewing industry too. Between the fall of the Berlin Wall and the Millennium party the take-over merry-go-round really got going. The reason was that someone had thrown the switch: Interbrew.

Sometimes rumours and prejudices linger for longer than you would like them to. Particularly if you happen to be Belgian. The belief that life in Belgium is more laid-back is hard to dislodge from European opinion. A la Belge translates as "the Belgian way" and means more or less "let’s try it and see". This is nothing more than a paraphrase for a fatalistic laisser-faire attitude.

Concern over Miller

First the good news: SABMiller reported organic volume growth in lager beer to reach almost 4% across the group in the five-month period to 31 August 2003. In Europe, volume was up 8% thanks to a strong performance in Russia and higher sales in Czech compared to the same period last year, when sales were affected by the severe flooding.
The Africa and Asia business delivered a 3% increase in organic volume growth over the prior year despite the negative impact of SARS in China. In South Africa, beer volumes have continued to grow, and for the period to mid-September were up by 2.5% on the previous year.
Now the bad news: In North America, Miller Brewing Company volumes were down some 4. Softdrink volumes (the key driver) were down 8% due to intense local competition..

Family buys back brewery

One of Britain’s most famous breweries is returning to family hands after almost two decades of corporate ownership. Four Yorkshire brothers have taken up Scottish & Newcastle’s offer to buy back the 176-year-old Theakston brewery, located in the scenic town of Masham, North Yorkshire. Theakston, which brews the brands Old Peculier and Theakston’s XB was taken over in 1984 by brewer Matthew Brown of Blackburn which was itself then sold to S&N. While most members of the founding dynasty stayed on, Paul Theakston split off in 1992 to set up his own brewery - the appropriately named Black Sheep brewery - across the road from the old family brewery. His brewery has thrived and now employs 90 people.
For several reasons, Theakston’s did not fare well under S&N..

Got some change, sir?

On 3 October, Heineken N.V. reported that it would issue a benchmark Eurobond to finance the acquisition of the Austrian brewing group BBAG for EUR1.9 billion announced in May this year. Heineken has mandated Barclays Capital, Citigroup, Credit Suisse First Boston and JPMorgan as joint bookrunners for this transaction. At this stage no announcement was made as concerns the volume and the terms of the issue, although such transactions usually have a volume in excess of EUR500 million.
The remaining financing requirement for the BBAG deal is anticipated to be funded by means of a syndicated revolving credit facility.
For the first six months this year Heineken reported that net profit and operating profit recorded organic growth of 6% and 7%, respectively.3 million hl.9 million hl..

S&N sold ist pubs

It’s done. And about time too. The long battle over Scottish &Newcastle’s retail estate is over. Behind the scenes a bidding war has dragged on for more than five months ever since S&N announced in April that it would pursue a sale of the whole of the managed retail business. On 6 October 2003 S&N sold the business to Spirit Amber Bidco for total proceeds of GBP2.5 billion. The net figure is GBP2.43 billion - the adjustment factors are £32m for S&N’s pension plan and intra-company debt. The net figure equates to about 8.4x EV/EBITDA, which is towards to the top-end managed pub market valuations, according to market observers.
In the year to 27 April 2003, S&N Retail’s turnover was GBP1.04 billion, with operating profits of GBP228 million from net operating assets of GBP2.2 million..

Arrivederci Roma

In the grand scheme of things, even little things matter. For example, who beds whom. With Birra Peroni (Peroni) having become the Italian subsidiary of SABMiller plc, the co-operation between Peroni and Anheuser-Busch was no longer considered politically correct. After all, Anheuser-Busch and Miller are fierce competitors in the US beer market. That is why Peroni will launch Miller Genuine Draft in the Italian market towards the end of 2003 and give up brewing Budweiser and Bud under licence with effect from November 2003.
Peroni’s agreement with Anheuser-Busch, which has been in place since 1995, has not been renegotiated following SABMiller’s acquisition of a 60% stake in Peroni in May 2003. 4% of total Peroni volumes. Heineken Italia is the market leader ...p.A.p.A.p.A.p.A..

Healthier margins

Once upon a time - and not so long ago - Warsteiner Brewery was Germany’s major brewer and sold more than 6 million hl beer annually. This year its Managing Director, the Peru-born Gustavo Möller-Hergt, 41, expects output to drop to 4 million hl and the brewer to relocate to rank number three. At the end of 2002 Warsteiner decided to discontinue brewing 300 000 hl of beer for Germany’s discount supermarket chain Lidl, which in the past may have helped fill its vessels but did nothing to fill Warsteiner’s coffers. According to Möller-Hergt, volumes have suffered as a consequence of the decision, but returns have improved. This news has put an end to speculation that Cramer was going to sell his brewery or turn it into a foundation to secure its future existence..

Interbrew buys Spaten

Two days before the start of the Munich Oktoberfest Interbrew announced a strategic partnership with Gabriel Sedlmayr Spaten-Franziskaner Bräu KGaA ("Spaten") in Munich, which will combine Spaten’s beer business with Interbrew Deutschland. Don’t be fooled by the terminology, but the complex deal is nothing but a three-step take-over of the southern German brewing group. The combination will create the largest brewery group in Germany with 15.6 million hl production volumes and an 11% share of the German beer market. The transaction is subject to shareholders’ and regulatory authorities’ approval and is expected to close in the second half of 2004. Munich brewers remember only too well the headlines in the local press after Heineken had signed a joint venture with Paulaner.6x..

Interbrew's new CFO

François Jaclot has been appointed Chief Financial Officer of Interbrew as of 15 September. He succeeds Luc Missorten, who left the brewer this summer "to pursue business opportunities outside the company." Jaclot, 54, a French citizen, is an experienced finance professional. Before joining Interbrew he served as Chief Financial Officer, Director and Vice-Chairman of the Management Committee of Suez from 1997 until 2003. Suez is a transnational utilities group, whose core businesses are energy, water and waste services. Suez owns Tractebel, the Belgian utilities company which specialises in electricity, gas, and water and on whose Board of Directors serves ... Baron de Keersmaeker, Interbrew’s former Chairman.