It is believed that Interbrew will dispose of the Tennent’s Lager brand, Scotland’s major brand, for up to £250 million to appease the competition watchdogs. Interbrew has denied the speculation, saying that it would definitely keep the lager brand.

Haendler & Natermann GmbH, Hann. Münden, and Goetz + Müller GmbH, Berlin, Germany, will invest 3 million DM in the first production stage of a joint paper and aluminium label plant in St. Petersburg. As of late autumn, sales will commence to a large Russian brewery and international groups.

In 1999, Hungary produced 7 million hl (+0.4%) of beer. The five breweries belonging to the Hungarian Brewers’ Association have a joint market share of 96%. According to estimates, Dreher has a 30.5% market share, Borsodi has 29.8% and Brau Union Hungaria 25.3% or 1.756 million hl (+6%).

Ulrich Kallmeyer, 55, has been appointed CEO of Binding-Brauerei AG, Germany’s number three brewing group. Before joining the Frankfurt brewer, he was Managing Director Controlling and Finances at Henkell & Söhnlein Sektkellereien, Wiesbaden. He succeeds Klaus Peter Erbrich, 66, who retired from the post to become the chairman of the supervisory board of Binding-Brauerei AG.

South African Breweries plans to merge the three Czech breweries (Pilsener Urquell, Radegast and Velke Popovice) which it controls into one company named Pilsner Urquell. Radegast and Velke Popovice will shut down operation, without being liquidated.

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..