At long last

It’s official now. The question which has been bugging the industry for years - "When is Interbrew going to go public?2 - has been answered. Although Interbrew’s owners have long resisted going public, the CEO Hugo Powell said on the occasion of releasing Interbrew’s 1999 results that Interbrew was to be introduced to the stock exchange before the year end.
The management has been requested to evaluate all aspects linked to an initial public offering (IPO) and to advise the Board of Directors about the terms and timing of this transaction. The purpose of the IPO is to fill Interbrew’s coffers with the means for further growth. Depending on how much control the three families behind Interbrew are willing give up, the IPO could fetch as much as US$1.35 billion.4 billion (US$7.5%).04..

Austrian beer is alive and well

This is how the Association of Austrian Breweries views developments in the beer and breweries‘ statistics in 1999. Consumption went up 1 l to 109 l per head. Domestic output rose 0.3%, and 4 new brewery plants were commissioned, raising the number to 99. According to "Statistics on the Austrian Brewing Industry 1980 - 1999", Austrians have reverted to classic beer types. Lager consumption rose 3.4% while light beers (max. 3.7 % alcohol by vol.) dropped 17.1% and low gravity beers (9 to 11% OG) 4.0%. "Weizenbier" also went up 3.2%, and "Radler" (shandy) rose 6.2% . The share of cans rose also in Austria by another 2%, reaching 19.5% of unit packs. Returnable packaging holds an 87% share for domestic beer.

1066 and all that - The UK brewing industry and the bitter end

Bootleggers, bargain-hunters, boozing box-watchers: British brewers are in despair. Their countrymen have discovered the pleasures of cocooning. Having a bit of a good time means sitting on the sofa, the remote in one hand and a bottle of cheap beer from France in the other. If you thought matters could not get any worse for British brewers, you are mistaken. Read on.

October 14, 1066: it was a typical autumn day. The sun was just rising above the Channel. King Harold had positioned his army at the top of Caldbec Hill along the Stenlach Ridge, a few miles north of Hastings. He expected to have clear visibility all around him. William of Normandy, his archers, infantry and cavalry would be forced to run up the hill to attack. That was the plan. An armada of white vans and pickups..

Heineken‘s net profit increased

Heineken said that in 1999 net profit rose by 16% to 516.4 million Euros from 445 million the previous year, on sales of 7.148 billion, compared with 6.272 billion a year earlier. Operating profit as a percentage of sales increased to 11.2% from 10.5%.
While the European beer market was stable in 1999, the company registered organic growth of 3%, with nearly all European operating companies contributing to the growth and increased market share. Sales in France and the Netherlands were slightly higher than the year before; so were sales in Greece. Zywiec in Poland had made a "positive contribution" to operating profit. At El Aguila in Spain, nearly all brands increased their market share and profit was higher, too. In the U.S. According to Mr.S. Vuursteen.4% to 100%..

Danone sells Brasseries Kronenbourg

Rumour has finally become fact. Last year already Brauwelt International (No 5/1999) reported that the French biscuits to beverages group Danone was prepared to sell Kronenbourg to the UK’s major brewer, Scottish & Newcastle (S&N). Finally, on 20 March Danone Group announced that it was combining its brewing assets in France (Basseries Kronenbourg), Belgium (Alken Maes) and Italy (24% of Birra Peroni) with the brewing business of S&N. This partnership will create the second largest brewer in Western Europe, putting S&N’s output in Europe at 29 million hl (including the volume acquired from Danone). S&N will rank second behind Heineken and ahead of Carlsberg, Interbrew and Bass. According to the French’s modest appraisal, the new group will be Europe’s most profitable brewer.6bn)..

Revolving doors

Richard Kelly, 53, a key architect of Molson Canada’s advertising strategy, has parted ways with the brewer following a recent management shakeup. Mr. Kelly joined Molson in 1997 and was Senior Vice-President of Strategic Marketing, after having worked as a consultant for several companies, most notably Labatt Brewing Co., Toronto, and its then president Hugo Powell who is now running Interbrew SA. Molson has announced the appointment of Michael S. Downey to the position of Senior Vice-President Marketing.

Focus on new plants: Browar Kielce, Poland Compact and clear lay-out

Since 1996 Palm has a joint venture with Browar Kielce - a small Polish brewery in Kielce - in the southeast corner of Poland. Kielce is a medium-sized town of 88,000 inhabitants, 170 km from Warsaw towards Kattowice.
At first only a Pils type beer was brewed. The name became Browar Belgia and the Pils was modified and upgraded to "Belgia Pils-Belgian Style", refering to the excellent Belgian brewing tradition. The Palm brand was introduced in ’98 and is very successful so far.

Sales rose from 15,000 hl in ’95 to 80,000 in ’98. Production could barely follow the sales, and at first some investments raised production capacity at the original site. First an existing chicken slaughter-house had to be partly dismantled. The roof was completely renovated.
....

Yes, on condition that ...

The Spanish government’s competition tribunal has finally released the conditions under which Heineken can complete its acquisition of Cruzcampo (5 breweries) announced in June last year. The deal promised to raise Heineken’s share of the market to about 40 per cent, putting Heineken ahead of the brewers Mahou and San Miguel which are owned by the French Danone group.
The Spanish government expects Heineken to divest one sixth (17%) of its production capacity and storage facilities. It further calls on Heineken to sell all its beer brands in Spain with the exception of Heineken, El Aguila and Cruzcampo. On top of that Heineken was ordered to lift exclusivity clauses in its contracts with hotels and restaurants and restrict its production and distribution licenses with other groups..

Baltika Brewery receives EBRD credit

St. Petersburg’s Baltika brewery, which is majority owned by Baltic Beverages Holdings, itself a joint-venture of Scandinavian brewers Pripps Ringnes and Hartwall, signed a credit agreement with the European Bank for Reconstruction and Development (EBRD) for US$40 million. The credit has been granted for seven years and will be used to implement strategic development programmes aimed at raising production and developing the company’s distribution network in Russia. In 1998, EBRD already signed a loan agreement with Baltika’s St. Petersburg malting subsidiary. Baltika was founded in 1990 and joined BBH in 1993. Baltika beer is sold in more than 140 Russian cities. In 1998, Baltika produced 4.9 million hl of beer. It expects output to be even higher in 1999..

Beer market booms again

The Russian brewing trade has a resource at its disposal that is the envy of many western countries: a younger generation. With the turn from the vodka of their fathers’ to "hip" beer, the young generation of Russian consumers of the brewing trade are painting a rosy picture for the future. Even if it first takes full effect in the next generation believes Eirat Chairullin, president of the 2-million hl Krasny Wostok Brewery, himself still at a young age of 29. All the more time for long-term the planning of the brewing trade strategists.

The per capita beer consumption of the 146-million Russian population reached 23,3 liters in 1998. An virtually gigantic increase of nearly 50% in only two years. A paradoxical situation arises now and then.6 million hectoliters to 32.
....