Shiny and new

The Klin Brewery, in which Sun Interbrew has a 75% stake, expects to increase output to 2.0 million hl beer this year, up from 1.6 million hl last year. The production increase is partly due to a large-scale modernisation scheme valued at US$70 million, of which US$45 million will be spent this year. The modernisation and expansion scheme will bring up annual capacity to 4.0 million hl beer. Last year the Klin Brewery doubled its pre-tax profit to US$13.4 million.

There is a rumour afloat...

... that Interbrew’s US$10 billion stock market flotation scheduled for this year may have to be postponed. Some London analysts seem to believe that a flotation was too ambitious a move while the company’s deal to buy Bass’s and Whitbread’s brewing interests was still reviewed under the provisions of the UK’s Fair Trading Act. Interbrew officials played down speculations that the float would have to be postponed.

Scottish&Newcastle has reorganised its board. Brian Stewart, CEO and deputy chairman, has become chairman and Guy Dickson, formerly head of the beer business, group managing director. Sir Alistair Grant remains with the company as deputy chairman. Frank Riboud, CEO of Group Danone, has joined as non-executive director.

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.