Prize for Michael Jackson

The British beer and whisky writer Michael Jackson was honoured by the leading Beer Bars of Finland Association. He received the first Beer Ambassador award in Helsinki, Finland. This award was presented to him in recognition of his work and efforts on behalf of beer culture. The Leading Beer Bars of Finland Association was founded in 1995 and has 22 members.

Big Stella

Size matters. That’s why Belgian brewers have been bottling their beers in champagne bottles for ages. Never tardy to develop new marketing strategies, Interbrew will launch Stella Artois in a one-litre bottle later this summer. The big Stella bottle will be aimed at restaurants and selected food pubs. The wide-neck bottle will cost between £7 and £8 in restaurants and will be suitable for a group of diners to share. The Belgian brewer will also offer ice buckets for restaurant tables to keep the beer at the required temperature. According to market research by A.C. Nielsen, Stella Artois is Britain’s top selling alcoholic beverage whose retail value rose 23% to £300m in 2000, ahead of Carling whose value rose 11% to £161m..

I got news for you 2

In June, Heineken started a promotion sending mobile phone text messages to young drinkers in an effort to present the brand as contemporary, hip and cool. Pub-goers will be offered the chance to play a mastermind quiz on their mobile phones with a prize of a free pint. Only those outlets taking part in the promotion will display a special telephone number which punters have to dial to receive a text message with three knowledge questions. If they answer all three correctly they receive a text message saying that they have won a free pint of Heineken. The game will be in action from Monday to Thursday to help outlets attract business during quiet trading times.

Interbrew report reaches DTI

The Office of Fair Trading’s report on Interbrew’s £2.3bn take-over of Bass Brewers has been passed to the Department of Trade and Industry. A decision is expected some time in August.
In July the OFT listed four remedies to a situation thrown into uproar when the original ruling by the former Secretary of State for Trade and Industry, Stephen Byers, that Interbrew must sell all of Bass Brewers was rejected by the High Court on the grounds that Interbrew had not been given a fair chance of stating its case.
According to speculation by the British media, the OFT favours the third remedy, by which Interbrew would keep the Bass business in Scotland and Northern Ireland and the Bass Ale brand, but sell the Carling lager brand to a third party..

Diageo plans another share buyback

The world’s largest drinks company is planning a £2.5bn share buyback next year. The timing depends on which of Diageo’s two deals under review by the US competition authorities gets clearance first. The company hopes that the sale of its Pillsbury foods business to General Mills will go through before it is cleared to spend US$5bn on Seagram’s wines and spirits business with Pernod Ricard. The US authorities have already been investigating the deal for almost a year. Diageo has a history of buying back shares.

Vertical integration under fire

Scottish&Newcastle’s chairman, Brian Stewart, again had to defend the group’s vertical integration strategy when he presented the financials for the year ended 29 April 2001. While City analysts put into doubt the financial feasibility of S&N’s strategy of integrating brewing and retailing, arguing that S&N will destroy shareholder value if it continues to retain its 1,450 pubs, Stewart said that S&N’s pub estate would deliver double-digit earnings growth over the coming year to April 2002 and that there was no reason to sell off the pub estate.
In the year ended April 2001, S&N increased turnover 22% to £4,354m, EBITDA 15% to £762m, operating profit 14% to £568m and profit before tax 5% to £428m. With the exceptionals included, S&N would have made a pre-tax loss of £272m..

Sun Interbrew sells Krym Brewery

In the Ukraine, too, the competition watchers raised their voice... and Sun Interbrew listened courteously. In order to favour the authorities Sun Interbrew is going to sell its share of the Krym Bewery. This is meant to obtain the OK to acquire an 81% share of the Rohan Brewery. The Rohan Brewery is the second biggest of the country with a capacity of 2.5 million hectolitres of beer. This year they plan to invest EUR 11 million for the modernization of the production and another EUR 55 million for the construction of a malthouse. The Rohan Brewery has been established in 1989, it started its beer production in 1993.

Existential crisis

If Sweden’s monopolist alcohol distributor, Systembolaget, pushes ahead with its plans to cut down on the number of beer brands it carries, up to 35 of Sweden’s small brewers could be pushed out of business.
According to Swedish law, only Systembolaget’s 416 outlets and the country’s restaurants are allowed to sell full strength beer. This prohibitionist regulation has been met with approval by the EU competition authorities.
However, in four years’ time Swedish beer drinkers will be permitted to import as much beer into the country as other Europeans. To prepare for the liberalisation of alcohol distribution and consumption, Systembolaget has to increase its efficiencies as concerns the number of beer brands it carries and the number of people
it employs..

Carlsberg and the EBRD

The Danish brewery Carlsberg and the European Bank for Reconstruction and Development (EBRD) are going to invest the modernization of the brewery Wien, situated in St. Petersburg, Russia, with up to USD 27 million. It is planned to double the capacity of the brewery in the middle of the year 2002 to 24 million hectolitres. Compared with the year 1999 the sales increased by 56% to 6.34 million hectolitres in the previous year, including an increase of the sales of beer by 72% to 5.08 million hectolitres. Thus the enterprise has been able to increase its beer market share in St. Petersburg from 9% to 15%, and in Moscow from 1% to 5%. Wien produces eight types of beer and non-alcoholic, carbonated drinks. 60% of the production are sold in St..

Grolsch and Sumolis sign deal

Royal Grolsch, whose namesake brand hold’s number two position in the Netherlands, and Portuguese beverage manufacturer Sumolis entered a joint venture. Grolsch acquired a 20% stake in Cereuro, a Portuguese company producing and marketing beer. 80% of the shares remain with Sumolis. The joint venture is to provide Portugal’s 6m hl beer duopoly - Unicer and Centralcer - with a competitive challenge on the supply side, a Grolsch statement said. Cereuro which already distributes Grolsch in Portugal, plans to launch a local brand soon. Sumolis is the leading soft drink manufacturer in Portugal. During the financial year ended 31 December 2000 it had a turnover of €160m, an increase of 6. Sumolis also manufactures plastic and glass bottles.10. The market capitalisation was €43.59m.87m or 8..