"El Niño" and "El Niña"

In Colombia the beverage production is concentrated upon some few enterprise groups. According to informations from the statistics board DANE for 1999 the Colombian beverage industry consisted of 165 enterprises. Altogether they produced beverages at a value of COP 3,378.1bn and invested COP 10.9 billion (average exchange in 2000: USD 1 = COP 2,087). According to DANE the output of the Colombian beverage industry decreased by 2.6% in 2000, after a reduction of 13% in 1999. Once again, the number of jobs shrank rather significantly.
In 1999 the sales of beer and soft drinks had been impacted by the general economic condition and by climatic influences. It is here where among others the "El Niño Southern Oscillation" (ENSO) has to be set out.3 million to USD 20.6 million (fob).5bn).5b)..

Out of Africa

In an effort to reduce dependency on earnings from its African subsidiaries, South African Breweries seems to have thrown desiring glances across the Atlantic. According to a rumour published in the British Sunday Times of 12 August, SAB is in talks to buy Kaiser, Brazil’s second largest brewer with a market share of 13% in 2000 and an output of 11m hl beer. Kaiser has been struggling for some time. Last year its losses amounted to R$68m, 44% worse than in 1999. Since 1997, Kaiser has lost 2.6m hl of beer sales.
According to research by A.C.Nielsen, Brazilian beer sales in March were as follows: Skol 32.6%, Brahma 22.1%, Antarctica 15%, Kaiser 13.6%, Schincariol 8.9%, Bavaria 3.5% and others 4.3%. Kaiser is controlled by Coca-Cola..

Happy distilling in Colorado

On 12 April the Governor signed into law a bill (Senate Bill 156) that will allow micro-distillery pubs in the state of Colorado. Distillery pubs will be able to produce spirits and sell them at the licensed facility and one other location. Distilling your own booze seems to be the latest fad among US microbrewers if discussions at the IBS National Craft Brewers‘ Conference in Portland (see report) are anything to go by.

Anheuser-Busch posts earnings growth

First-quarter net earnings at Anheuser-Busch rose 12.6 %, the company’s tenth consecutive quarter of double-digit earnings per share growth. For the quarter ending March 31, 2001, Anheuser-Busch reported net income of US$394.4m, or 43 cents per diluted share. In the same period a year ago, Anheuser-Busch reported net income of US$350.3m, or 38 cents a share. Sales grew to almost US$3.5 bn in the first quarter, up from US$3.3 bn a year ago. This surprised some analysts as the weather in March had been cool, holding down sales in many US states. At the annual meeting in Orlando, shareholders defeated proposals to phase out the use of genetically engineered crops.

Missed a genuine opportunity?

It has not been a good first quarter for Miller Brewing Co. While Anheuser-Busch and Coors reported first quarter profits to be up, Miller announced an 18.4% drop to US$124m in operating profits compared to a year ago. Beer production fell 5.3% to 9.4m barrels. This comes after a so-so year 2000, during which Miller’s sales volume declined 2.6% to 40.6m barrels, partly due to price increases for its biggest selling brands Miller Lite, Miller Genuine Draft and High Life. However, it was these price increases which helped to raise revenue 2.4% to US$4.25 bn. Operating income was also up 5.4% to US$543m. Despite the price increase, sales of Miller Lite, Millers No 1 brand, remained flat in 2000, while sales of Miller Genuine Draft (MGD), its No. 2 brand were down 4.8%. Sales of No.8%..

Beware of averages

In April, Anheuser-Busch Cos. finally reached an agreement with the union representing more than 7,000 employees at its 12 US breweries. The agreement with the International Brotherhood of Teamsters comes 2 - 1/2 years after contract talks reached an impasse and Anheuser-Busch unilaterally implemented terms. Under the new contract, the aver- age Anheuser-Busch employee would make more than $66,000 annually. Total compensation would average nearly $50 per hour. Employees had been averaging about $65,000 a year under the imposed terms, with pay and benefits at about $47 to $48 per hour, a spokesman for the company said. The agreement runs through February 2004.

Disney man to market beer

Charles Oliver has joined Labatt Brewing Co as Vice-President of marketing. Previously he was with Buena Vista Home Entertainment Canada, a division of the Walt Disney Company.

Pilsener Urquell in Canada

Sleeman Breweries have signed a five year contract with South African Breweries to sell, market and distribute the Pilsener Urquell brand. Sleeman Breweries is Canada’s third largest and fastest growing brewery with significant market presence in all of Canada’s major beer markets according to company statements.

Molson to shut Regina brewery

Molson has announced that it plans to close its Regina brewery by March 2002, which will help the brewer to cut costs by a total of $150m a year. In a statement Molson said that it hopes to provide jobs for at least half of the 85 employees currently working at the plant. Small wonder that the unions were not pleased as the announcement coincided with Molson releasing the results for its fiscal 2001 ending 31 March. The company reported profit of $108.4m or $1.82 a share, up 32% from the previous fiscal year. Revenue rose to $2.48 bn from $2.37 bn.

Cintra to set up shop in Portugal

Cervejaria Cintra which currently holds 1.5% of the Brazilian beer market has issued an ambitious five year plan to boost sales both domestically and internationally. There are four breweries in the pipeline with the first one opening near Portugal’s capital Lisbon this summer. It cost US$58m to build and will be able to produce 1.5m hl of beer, 30m litres of soft drinks and 30m litres of mineral water per year. Annual revenue is expected to be US$23m. The other three plants will open in Brazil. Total investment in all four ventures will be in excess of R$400m (US$170m).