Brewing sector blossoms

The Association of the Brewery Industry predicts that Russia will produce 48.0 million hl of beer this year (+ 11 %). There are more than 400 large, medium-sized and small breweries in the country. Per-capita consumption of beer is 30 hl per annum. Imported beers have only a small market share.

Buy me

Wroclaw-based Piast Brewery is looking for a strategic investor. Piast Brewery has enjoyed fast growth in sales, but given the ongoing concentration in the Polish beer market, the brewer believes that only a partner with cash to invest will help it to secure its long-term future. Interested parties, please apply.

Budweiser in Latvia

The Czech Budweiser Brewery, Budvar, has once again won a round in the continuing brand names legal battle with Anheuser-Busch Inc., St. Louis. Following a court decision in Riga, Latvia, the Czech company has been awarded sole rights to sell beer in Latvia under this brand name.

Career moves

Michael Hollmann, 42, will become CEO of the troubled brewing group Brau+Brunnen (1999: 7.5 million hl). Prior to his appointment, he was Managing Director Marketing/Sales of Hannen-Tuborg Brewery (1999: 1.2 million hl), Carls-berg’s German subsidiary. Bjørn Sondenskov, 39, for-merly Vice President Western Europe and Export of Carls-berg A/S was brought in from Copenhagen to become Hannen-Tuborg’s CEO in charge of marketing, sales, and finance.

Platinum blondes

Germany’s leading Alt beer brewery, Diebels Brewery, Issum, has launched a beer mix, called "Dimix". Dimix is made of 60 % Diebels Alt beer and 40 % coke, which makes it a slightly alcoholic beverage (2.9 % ABV). The product is sold in cans and longneck bottles in order to make it more appealing to young consumers. Diebels Brewery is the first brewer among the country’s top ten beer bands to bring a beer mix into the market.

Eastern promise

For the nine months January to September 2000 Austria’s largest brewer, BBAG Österreichische Brau-Beteiligungs AG, recorded a 8.2 % increase of turnover to EUR 708.6 million and a 15 % rise in operating profit to EUR 63.1 million over the same period in 1999. Sales growth in central and eastern European markets boosted profits growth while the domestic market remained flat.

Beer sales up

In the 1999/2000 business year, beer production in Austria rose to 9.26 million hl (+ 1 %). Imports at 0.48 million hl (- 3 %) and exports at 0.50 million hl (- 8 %) both showed definite drops. Per-capita consumption at 114.1 l was 0.8 l above that of the previous year.

Target shooting

Key institutional investors are unhappy with the slow pace of change at Scottish&Newcastle (S&N), the UK’s largest brewer, and have issued a warning that S&N’s management is failing to deliver on promises to turn around the pubs and brewing business. Brian Stewart, S&N’s chairman, has been singled out for target shooting by the investors. The accusation: he seems to appear less dynamic and focussed than other chairmen in the brewing industry.
S&N’s decision not to pull out of pubs altogether has been interpreted by shareholders that S&N was confused about its future direction.
In January, S&N Retail, the pub and restaurant arm of S&N, confirmed that it was planning to dispose of 920 of its 2,373 managed houses and axe 1,300 jobs at its Scottish Courage unit..

Question: How do you bring up your share price? Answer: By starting a rumour that there is a merger or take-over in the offing. South African Breweries (SAB) reported first half pre-tax profits down to US$310 million from US$319 million on turnover down to US$2.11 billion from US$2.98 billion for the period ending 30 September 2000.
Its share price immediately went up when a rumour started making the rounds that SAB would form some kind of partnership with Belgium’s Interbrew. That took analysts by surprise who still had not digested the news that sales volume declined 6 % in South Africa due to a subdued economy and a shift in consumer spending. SAB’s management also hinted at a possible IPO (Initial Public Offering) to fund further acquisitions..

Stubborn or what

Coors Brewing Co. in the UK is planning a national roll-out of its Coors Light brand later this year. In order to avoid being confused with a low calorie beer, Coors Light will be promoted as a 4.5% ABV full strength lager.
Having been test-marketed in Scotland and Northern Ireland with the tag line "full strength goes down easy", Coors is prepared to spend an estimated £12 million on the national campaign.
Let’s wait and see if its Light brand goes down easy instead of down full stop. After all, Anheuser-Busch had to take its brand Bud Light (4.3% ABV) off the UK market after two years of disappointing sales. Anheuser-Busch admitted that many British beer drinkers were confused by the word "light" because to them it meant "low alcohol" rather than "low calorie".