Let them drink water

Come the silly season and the Eurocrats in Brussels can’t think of anything more outrageously funny than launching their plans to harmonise excise within the EU. The timing could not have been worse. This year, beer consumption in many European countries will be suffering as a consequence of bad weather and consumer reluctance to spend on all things naughty but nice after the introduction of the new currency, Euro, which, according to popular sentiment, has made life more expensive than it was under the old currency regimes.
For Germany, the harmonised EU excise on beer (EUR11.80 per hl) would mean an increase of 25 per cent on the current rate (EUR9.44 per hl) and a price hike of 30 cents on a crate of beer. Wine, which is still excise-free in Germany, would be excised at EUR16..

SAB to brew Pilsner Urquell in Poland

Pilsner Urquell, the flagship brew from the city of Pilzen, is about to take a step forward in brand development as South African Breweries (SAB) prepares to brew "the world’s first golden beer" in Poland by the end of the year. The move to SAB’s Kompania Piwowarska brewery in Tychy Poland will be the first time ever the lager has been produced outside of Plzen (that’s how the Czech spell "Pilzen") and marks the most substantial change to the brand since the brewer switched from oak barrels to conical cylinder brewing tanks in 1993.
"We are tasting it," said Jaroslov Pomp, press spokesman for the brewer Pilsner Prazdroj, emphasising the linguistic similarity between testing and tasting. "We will use our own yeast, own malt, own hops, only the water is original.
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... and another one

Carlsberg Breweries has set itself up as a major player in the Bulgarian beer market (4.0 million hl in 2000) with the help of two recent acquisitions. At the end of June, Carlsberg Breweries bought 59 per cent of the brewery Shumensko Pivo from Ferroal for an undisclosed sum. And at the beginning of August it acquired 67 per cent of the shares of the brewery Pirinsko Pivo (established 1969) from a group of institutional and private investors. Pirinsko Pivo is the third largest brewer in the country, with an estimated beer output of 410,000 hl, sales of US$8.1 million and a market share of 12 per cent. Again there was no mention of the price.
According to Carlsberg, Shumensko has an 8 per cent share of the market and recorded sales of US$7.75 million last year..

A new process for foam stability measurement Foam-Tester from Lg-Automatic (Denmark)

The novel Lg-Foam-Tester is an addition to the many possibilities of objectively measuring foam stability of beer. Designed for laboratories, the instrument has now undergone first inter-laboratory tests, the results of which are reproduced below. The instrument offers ease of operation similar to other modern systems while simultaneously being reminiscent of the well-proven Ross & Clark method.

eople in most beer-drinking civilisations regard the foam on a freshly dispensed beer as one of the important external quality characteristics of their favourite drink.

Once the transport (pressure) container has been opened, pressure release causes carbon dioxide dissolved in beer to be set free, and foam is formed prior to or during dispensing.
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Adieu Jack Daniels

Competition is heating up in the drinks industry where the top 3 drinks groups, Diageo (Johnnie Walker, Smirnoff, J&B, Baileys, Captain Morgan), Allied Domecq (Ballantine’s, Beefeater, Sauza Tequila) and Pernod Ricard (Chivas Regal, Jameson, Wild Turkey, Martell, Havanna Club, Wyborowa) already control 44 per cent of the global market for premium western-type spirits. The privately-owned drinks company Brown-Foreman and owner of the Jack Daniels whiskey brand, will terminate its distribution agreement with Diageo in the UK after 15 years.
Brown-Forman, which also owns the brand Southern Comfort, plans to intensify its ties with family-controlled Bacardi instead. To Diageo, Brown-Forman’s brands were worth £12 million in trading profits a year. In the U.S..

Spring cleaning ... Delayed

In the previous issue of Brauwelt International we reported that the red triangle, the world’s oldest trademark and the symbol of Bass on top of the former Bass maltings and brewery were bound to go south as Coors was establishing its presence in Britain’s famous beer town.
Now it seems that Coors will have to delay its spring cleaning until the end of August because a pair of peregrine falcons have made their nest at the Bass Maltings tower. Peregrine falcons are a rare protected bird and it is an offence to deliberately or recklessly disturb a nest under the 1981 Wildlife and Countryside Act. Apparently, the birds set up their nest near the red triangle last year already and successfully raised two young before returning to the nest in late March this year..

Do as you are being told

While Scottish & Newcastle’s (S&N) board is quietly going about its business of running the company and keeping its lips shut whether there are any imminent investment or divestment plans, there is talk in the City that S&N might still end up under the wings of the high-flyer South African Breweries, although S&N is thought to be very much against the idea. S&N also seems to be set against the idea of divesting its pub estate although it would help it to re-rate the stock further. However, those familiar with the situation argue that management will be doing just that.
British media have been speculating for a while that S&N may consider a property sale, "possibly this year"..

Sun Interbrew boosts sales

Sun Interbrew, which has 11 breweries in Russia (8) and Ukraine (3), reported sales up 29 per cent to 13 million hl 2001 (including beer and softdrinks) from 10 million hl in 2000. Sales by value jumped 39 per cent to €392.2 million in 2001 from €282.9 million in 2000. EBITDA rose to €89.9 million from €61.4 million in 2000. Net income doubled to €22.4 million from €10.8 million. Sun Interbrew is a joint venture between Belgium’s Interbrew and Sun Brewing (part of Sun Group), set up in 1999 to develop its brewing interests in Russia and the Ukraine.

BBH builds new brewery in Eastern Siberia

At the end of May, Baltic Beverages Holding (BBH) announced that its Russian subsidiary and largest brewing company in the land of Puzhkin and Pirozhki, is building a new brewery in Habarovsk in Eastern Siberia. The population of the Habarovsk-region is approx. 10 million people. The capacity of the new brewery will be 1.0 million hl, and the plant is scheduled to go on stream in the summer of 2003. The investment is expected to be around US$50 million.

Cost cutting 3

Last year already, South African Breweries (SAB) complained that in Romania low consumer disposable income and an excise regime in favour of spirits have kept prices down, thus countering the positive effects of volume increases. SAB therefore pulled the plug on the business and decided to merge its two Romanian companies, SO Ursus SA and SO Bere Timisoreana SA (acquired by SAB in August 2001) into a single beer company.
The new company, to be called Compania de Bere Romania (CBR) will have its headquarters in Cluj-Napoca, branches in Timisoara, Pitesti, Buzau, Afumati and an office in Bucharest, SAB said. Beer production and packaging at the Pitesti brewery ceased at the end of May, although a company branch and maltings will continue to operate in Pitesti..