Shrewd move. The world’s number two brewer SABMiller has appointed Trevor Manuel, 58, as an independent non-executive director with effect from 1 March this year.
And we thought the sun would always shine on China beer (metaphorically speaking). But see what a spell of bad weather can do to a brewer that has a national market share of approximately 24 percent and operates 95 breweries across the country.
Globally, Guinness’ net sales declined 4 percent in the six months to December 2014, driven by a weaker performance in Nigeria, Indonesia and Britain, and the drinks company’s suppliers are going to feel the heat. Diageo, which owns Guinness beer has around 200 Irish suppliers, is extending its standard repayment term to 90 days from 60 days, Irish media reported on 30 January 2015.
If brewers can add spirits to their beers – think Desperados – so can cider manufacturers. Now there are spirit ciders – or “spiders” – to grab the attention of trend-conscious younger consumers. This burgeoning “spider” category has a new entrant in the form of Magners with Irish whiskey.
After a preliminary review, the German Brewers Association reported on 12 January 2015 that beer sales in 2015 were slightly up on the previous year. The rise in sales was triggered by the stable consumer climate, a relatively short winter and the good weather in spring and early summer, especially during the Football World Cup. The German Brewers Association estimates that per capita beer consumption in 2014 (alcoholic and non-alcoholic beer) rose to 107 litres, the first increase in many years. Considering that 2014 also saw a beer price increase, the result is even more impressive. Now German brewers worry that 2015 may prove tough going.
What a screamer: Icelandic microbrewery Stedji has produced a beer in time for the country’s mid-winter festival, Thorri (23 January until 22 February 2015) which has the world up in arms. Stedji’s Hvalur 2 beer (hvalur = whale) is made with the testicles of fin whales that were smoked in a “traditional way” with dried sheep dung. What makes the beer so political is the fact that fin whales are classified as endangered on the conservation Red List.
Since the end of November 2014 Carlsberg has seen 15 percent of its market capitalisation wiped out. On 12 January 2015 it was valued at DKK 74 billion (EUR 9.94 billion/USD 11.7 billion). Some analysts estimate Carlsberg’s value could decline by another 10 percent this year. So far, Carlsberg’s efforts to reassure investors it can weather continued losses in Russia have shown little sign of working.
In early January 2015 the pub operator JD Wetherspoon settled a dispute with Heineken that prompted the chain to ban the brewer’s drinks from its 926 pubs in Britain and Ireland. The argument erupted in December after Heineken’s Irish arm refused to supply its eponymous lager and Murphy’s stout to Wetherspoon’s new pub in Dún Laoghaire, County Dublin.
Will he even hear their call? The Wine and Spirit Trade Association (WSTA) and the Scotch Whisky Association (SWA) are imploring the UK’s Chancellor George Osborne to cut the duty on wine and spirits by 2 percent in his March budget. The “Drop the Duty!” campaign, launched on 15 December 2014, argues that a cut would give a big billion boost to public finances in 2015.
Russia has just lost the economic war with the West, media touted in December, as her currency descended into free fall. Russia’s economy is facing a perfect storm – as is Carlsberg. Since July 2014, Carlsberg’s stock has lost what it managed to gain since 2011. In December alone, Carlsberg’s market value slumped more than USD 2 billion, giving it a market capitalization of DKK 70 billion (USD 12 billion).