Evolution of brewing groups and private breweries (over 2.0 million hl per annum)

Table 1, a breakdown of total beer sales in the Federal States of Germany in 2000, indicates that total sales fell by 0.4%.
This drop is attributable to declines in Berlin/Brandenburg (-4.6%), Hesse (-3.8%), North Rhine-Westphalia (-2.3%), Baden-Württemberg (-0.2%) and Bavaria (-1.7%).
Biggest increases in sales were registered in Mecklenburg-Western Pomerania (+8.8%), Lower Saxony/Bremen (+3.3%), Rhineland-Palatinate and Saar
(+3.2%), Saxony-Anhalt (+3.9%), Thuringia (+1.4%) and Schles-wig-Holstein/Hamburg (+1.2). In the latter States, exports seem to have risen unless domestic sales have also increased.
When looking at Table 2 showing the evolution of brewing groups and private breweries, it is noteworthy that the Holsten Group, with a volume of 10. Becks & Co.8%..

Europe’s leading brewing groups

In the highly competitive European beer market, the first year of the new millennium was marked by dramatic changes. The pace of consolidation has hotted up. According to a report by the British market research institute Canadean Ltd., the mergers created a series of European "Super Groups" which control a sizeable market share. The rapid changes are evident in the following table: The Bass figures include Radegast production, BBH is not reflected in the Carlsberg figures. The 2000 figures are estimates. The table is taken from the new "Europe Beer Report - The Changing Competitive Land-scape", available from Canad- ean Ltd. (+44 (0) 1256 394 223) at a price of 5200 pds. stg.

Breweries face a difficult choice

Austria’s brewing industry faces a difficult decision in years to come: Either going for internationalisation or focussing on regional markets. A recent study on the "Future of the Austrian Brewing Industr"” by Contrast Management Consulting indicates that room to manoeuvre in the narrow mid-range sector where national players such as Ottakringer and Stiegl are also active is getting very limited.
The authors of the study also no longer exclude the possibility of a foreign group entering the scene. Foreign brewers are not a factor in the Austrian market yet, the study reports. It may be expected in the medium-term that foreign breweries will become increasingly active in Austria: Either by higher exports, mainly from the East, or by acquiring domestic breweries.5%.e.

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.