Keep the money-men happy

Heineken’s full year results were at the top end of analysts’ expectations. They showed a 15 per cent rise in net profits to €715 million from €621million in 2000. The bottom line benefited from a €52 million gain on the sale of the company’s stake in a Spanish hotel group, as well as a cash dividend from Whitbread. Net turnover increased by 13 per cent to €9.16 billion from €8.1 billion in 2000 and operating profit rose by 22 per cent to €1.1 billion from €921 million in 2000. Sales of Heineken beer rose by 4 per cent to 22.4 million hl world-wide. A 20 per cent rise in the volume of Amstel Light in the US compensated for lower volumes of Amstel in Europe. Total Amstel volume remained stable at 10.8 million hl.

Pubs to fight for compensation

The newly-formed United Kingdom Rural Business Campaign, representing pubs whose business was affected by the foot-and-mouth outbreak, has put in a High Court claim for £5.1 billion compensation from the government according to UK media reports. The campaign argues that while farmers received compensation for the effects of the disease, no other business received any money.

Heineken to buy Bravo

According to the "Financial Times", Dutch brewer Heineken is to buy Bravo, Russia’s third largest brewer, for up to US$400 million. Bravo has a market share of 5%.

Budvar to increase exports

Budejovicky Budvar has announced that beer output stagnated in 2001 at 1.34 million hl but that exports rose 8 per cent to 530,000 hl of beer. Budvar is the Czech republic’s 3rd largest brewer. It has implemented plans to set up its own UK operation, ending a 25-year long relation with BB Supply Centre. The new subsidiary, Budweiser Budvar UK, will be headed by sales director Robert Chrt.

Big four national brewers massively underperform in £2.6bn cask ale market

A new report on Britain’s cask ale market shows that Britain’s Big Four national brewers, Scottish Courage, Interbrew UK, Bass Brewers and Carls-berg-Tetley, are massively under-performing in a £2.6bn sector twice as large as previous estimates have made out.
The report shows that while the Big Four, thanks to their huge lager brands, such as Carling, Carlsberg and Stella Artois, have more than 77% of the total beer market in the UK, they capture barely a quarter of the cask ale market. Instead Britain’s remaining 48 or so regional brewers, many of them still run by the families that founded them in the 19th century or before, sell nearly six out of 10 pints of cask ale.6bn by retail value is the second most important segment of the draught beer market after standard lager.com
....

Stewart to step down

Apparently, there is only so much flak a Kevlar jacket can withstand. And Brian Stewart’s seems to have worn thin. On
20 January, the UK’s "Sunday Times§ reported that Scottish & Newcastle’s controversial CEO was to stand down and that headhunters had been appointed to look for a new chief executive with "international experience" who would take the company further afield internationally in order to secure its independent future.
For several years now Brian Stewart has been the target of almost vitriolic attack from the media and the City for his obstinate refusal to divest what the City thinks is a value-destructive pubs & hotels division.
However, the City remains sceptical as to where S&N could spend this kind of money. Dickson’s pay package was £522,000..

Have I got news for you

The past few months have been a great time for rumour mongers. Shortly before Christmas documents leaked to the "Financial Times" indicated that Interbrew was to launch a £4 billion bid for South African Breweries (SAB). Such a deal would have created the second largest brewer in the world, only marginally smaller than Anheuser-Busch by volume.
After a few days of phone lines hotting up, Interbrew’s CEO Hugo Powell had to apologise to SAB’s CEO Graham Mackay for these allegations because there was no substance to them. Powell admitted that research on SAB had been carried out in the course of routine analysis but that there were no firm plans to make an all-stock offer for SAB.
In January, these rumours gained momentum with SAB dropping broad hints about such a merger..

BBH acquires another brewery in Russia

In January, Baltic Beverages Holding AB (BBH) has signed an agreement with the principal shareholders in Voronezh Brewery to acquire 70% of the shares through a directed issue. With this acquisition, BBH’s beer market share will increase to about 32% and its number of breweries to eight according to a company statement.
Voronezh Brewery is situated in the town of Voronezh in southern Russia, some 500 kilometres south of Moscow. The brewery has an annual capacity of 730,000 hl of beer and it is the leading brewery in the region. The acquisition further strengthens BBH’s position in the principal population centres in Russia and improves the logistic structure.
The acquisition is contingent upon approval of the Russian competition authorities. Orkla owns 40% of Carlsberg Breweries..

US$25 m invested in new maltings

Litmalt, Lithuania’s only malting company, is to build a new malting plant. The plant will be designed by Finnish experts and should be completed in early 2004. The new plant will give Litmalt, which is owned by Finland’s Polttimo Companies and the Lithuanian brewer Utenos Alus, a capacity of 50,000 t to 70,000 t per year. This would meet the demands of the Lithuanian brewers, sources in Lithuania said. Litmalt produced 13 200 t of malt in 2001. In 2000 Lithuania’s brewers produced 2.1m hl of beer.

Finalmente - it’s ours

Carlsberg Breweries A/S has acquired the remaining 25 per cent of Carlsberg Italia S.p.A., which now gives Carlsberg Breweries a 100 per cent ownership of Carlsberg Italia.
As early as 1982, Carlsberg had bought 50 per cent of the share capital and in 1975 increased its share to 75 per cent. The year 2000 net turnover of Carlsberg Italia was approx. DKK 1.7 billion (€229m).
The company has a total of 800 employees and operates two breweries, one in Varese north of Milan and one in Ceccano outside of Rome.
That Carlsberg entered the Italian market in the first place was a natural consequence of many years of co-operation with the Italian brewer Poretti as concerns the import and the licensed production of the Carlsberg brands.8 million hl out of which beer counted for 1..