Brau Union of Austria will not shed any of its eight brewery plants at home, according to CEO Dr. Markus Liebl. The group will also maintain its strategy of offering a range of brands. Brau Union claims to have a 56% market share in Austria.

What, no alcohol?

Although Russians like strong drinks, Baltika, Russia’s leading brewer, is considering the possibility of launching a non-alcoholic beer which could be marketed under the label Baltika No. 8. In 1997/98 already, Baltica test-marketed Baltica No. 8 but the non-alcoholic beer was not a success and so the brand was discontinued. Over the past year, sales of non-alcoholic beers have doubled in Russia and Baltika is eager to cash in early on the popularity. The Amstar brewery in Ufa produces a non-alcoholic beer, called Sokol, which contributes 15% to Amstar’s sales. With competition being small, and other brewers unwilling to enter a risky territory, Baltika’s move to re-introduce Baltika No. 8 may prove successful.... in the long run.

Sun Interbrew reports losses

Sun Interbrew which claims to control 17% of the Russian and 20% of the Ukrainian beer market, reported losses of US$ 1.4 million in the first half of the year compared to a profit of US$7.4 million in the same period in 1999. Sales in January-June 2000 rose 8% year-on-year to reach 4.8 million hl beer.
Sun Interbrew’s sales revenue in the first six-month period increased 23% to US$114.5 million. In order to cope with rising demand, Sun Interbrew in 2001 plans to invest US$100 million in upgrading its eight breweries in Russia. According to Vladimir Shishin, General Director of the Beer Industry Association, beer production in Russia will rise to 48 million hl in 2000, up from 43 million hl in 1999 with imported beer brands continuing to decline.5% to 2.0% of the Russian beer market..

It’s a deal

Miller Brewing Co and South African Breweries (SAB) have signed an agreement under which SAB will produce, distribute and market Miller Genuine Draft in Russia and the CIS. The brand will be brewed at SAB’s Kaluga Brewery. Miller Genuine Draft will be the third international brand to be produced by SAB in Russia joining the Czech Staropramen and the German Holsten. Miller Genuine Draft has been available on the Russian market for six years, being imported from the US. It has since become one of the top five international beer brands although there has been very little advertising support for this premium-priced product. In 1997, its best year to date, the brand sold more than 30 million bottles according to SAB..

Beer output in Russia: +27%

Beer production in Russia rose 26.7% to 26.1 million hl in the first half of 2000, relative to the first half of 1999. According to Taimuras Bollojev, Director-General of Baltika of St. Petersburg, per-capita beer consumption in Russia will be about 36 to 37 l this year, as against 30 l in the previous year. The share of imported beer dropped 1% to 2% in the first six months.
According to Bollojev, one cannot really speak about a "beer boom" in Russia despite an increase in sales. Sales of eight of the 30 largest beer producers dropped compared to the previous year. According to the manager, the generally favourable outlook for development of the industry is far from rosy because the Government is taking economically unrealistic decisions.24 million hl of beer for 4.15 million hl.K..

BBAG to become leading brewer

Second time lucky. BBAG may have failed in its attempt to acquire Pilsener Urquell, but this has not deterred the Austrian brewer from continuing its expansion into Central and Eastern Europe. This summer it bought Brewery Holdings, which brews the popular Gambrinus brand, from two investment groups: Jupiter Asset Management, a subsidiary of Germany’s Commerzbank, and Advent International, a US private equity firm. Although the price was not disclosed, analysts believe the deal to be worth more than US$100 million. Only recently, Brewery Holdings turned down an offer from SAB believed to be lower than BBAG’s.
Brewery Holding’s turnover this year is expected to be US$85 million..

S & N looks south

Scottish & Newcastle (S&N), the UK brewer, pub, restaurant and hotel operator has bought a 49% stake in the second largest Portuguese brewer Central de Cervejas (Centralcer) for £93 million and plans to produce several of its international brands in Portugal to bring the operation closer to full capacity. S&N’s portfolio of international beer brands includes Foster’s Miller, Beck’s, Kronenbourg, Newcastle Brown Ale and John Smith’s. Centralcer produces 2.7 million hl of beer, enjoys a 40% share of the market and produces Sagres, which at 1.9 million hl is one of the country’s top selling beers. John Nicolson, chairman of S&N’s international beer division, will sit on Centralcer management committee.

CEDC to distribute Beck’s

The Central European Distribution Corporation (CEDC), a US-based and Nasdaq-quoted distributor, announced that it has won exclusive distribution rights of Beck’s for the Polish market. CEDC, which claims to be the leading importer of beer, wine, spirits and distributor of domestic vodka brands in a market worth US4 billion at retail price level in 1998, operates 16 regional distribution centres in urban areas in Poland. The distributor thinks that there is a great potential for imported beer brands in Poland and expects that it will sell more than 100,000 cases of Beck’s in the first year.

Net profit up 19%

Heineken NV reported a 19% rise in first-half net profit. For 2000 the brewer expects growth in net profit to exceed 15% despite less than favourable summer weather in many of its markets. A higher exchange rate for the US dollar contributed to net profits rising to EUR249 million from EUR210 million in the first half of 1999. Operating profit as a percentage of net turnover was 10.6%. Net turnover grew 15% to EUR3,9 billion. Group beer volume rose 15% to 36.2 million hl. Sales volume of the Heineken beer brand increased worldwide by 7% to 10.5 million hl. Sales of the Amstel beer brand rose 7% to 5.2 million hl.

The Netherlands are the no. 1 beer exporters

According to the most recent report of Produktschap voor Bier in the Netherlands, the Association of Dutch Breweries, per-capita beer consumption has levelled off at 84.4 l in the Netherlands in 1999.
A total of 24.5 million hl of beer have been produced in the Netherlands last year (1998: 23.98 million hl). 12.19 million hl of this (11.7 million hl) were exported. 12.32 million hl (12.27 million hl) were sold domestically. Together with almost 1 million hl of imported beer, total domestic beer sales were 13.3 million hl (13.22 million hl). Pils had a 90.2% share, non-alcoholic beer had 2.0%. Speciality beers accounted for the remainder.
The Netherlands are not just the world’s largest beer exporter but also export to the largest number of countries (170)..