Will they get their act together

With consumers thirsting for New World wines, Argentine wines could be the next big thing. Argentina is the world’s fifth largest wine producer.
For the past five years, international drinks heavyweights by the name of Kendall-Jackson of the US, Pernod Ricard of France, Allied Domecq of Britain, Sogrape of Portugal and Concha y Toro of Chile have ploughed more than US$250m into wineries. Argentine investors have responded with US$250m of their own.
The question is: Will Argentine wine companies develop their industry for export? The US Department of Agriculture’s Foreign Agricultural Service
estimates that of the 365m gallons of wine produced in 2000, Argentina only exported 32m gallons..

Anheuser-Busch reported that domestic beer shipments to wholesalers rose to 98.3 million barrels (115 million hl) in 2000. This represents an increase of 2.6 million barrels or 2.7% over 1999. Patrick Stokes, CEO of Anheuser-Busch, was quoted as saying that the "Bud Family" led this record achievement. Once again, Bud Light delivered outstanding results, registering its 9th consecutive year of double-digit growth.

Name change

Genesee Brewing Co., Rochester NY, finally completed its long-awaited management buy-out. Eight former Genesee executives bought the company for US$25.8 million, US$14.8 million of it in cash.
Changing the name to High Falls Brewing Company does not mean that the Genesee name will disappear. In fact, it will appear on all labels except for the new speciality brews. Those will be sold under the High Falls label.
Pabst Brewing Co. had offered to purchase some of Genesee’s brands to be brewed elsewhere, but that would have meant the closing-down of the Genesee brewery and 450 workers loosing their jobs.
The new management will spend US$3.5 million more on advertising than the old regime to improve sales. Also, the company will offer more contract brewing opportunities..

Siebel partners with Doemens

The Siebel Institute of Technology (Est. 1872) of Chicago, and the Doemens Brewing Academy (Est. 1895) of Munich, have formed a partnership to provide students with the opportunity and choice of studying at either the Chicago or Munich campus or at both campuses in order to obtain a truly international training. The new venture will be called The World Brewing Academy (WBA). Initial courses offered through the WBA will be campus based including a two-week Concise Course in Brewing Technology and a twelve-week International Brewing Diploma Programme. The Siebel Institute and Doemens Academy will continue to offer separate research and training programmes. For further information, contact Lyn Kruger at or Dr Fritz Briem at .

They are out to get you

Who would have thought that British consumers consider it a rite of passage to get trolleyed (very drunk) each weekend so that they will end up lying face down in public places - as famously exemplified by the Prime Minister’s son last year? Apparently the Home Secretary believes alcohol consumption by young consumers a terrible threat to society and has unveiled a new Criminal Justice and Police Bill, which is to curb drunkenness, drunken behaviour and under-age drinking.
To that effect, the police are to be given powers to close disorderly pubs and clubs for up to 24 hours without notice, citing noise nuisance as the reason for instant closure. People in the North West spend the most on alcohol, while Londoners buy the most bottled water and Scots the most fizzy drinks..

Miller Valley Brewery opened

Miller Brewing Co. announced that it has completed the construction of a US$4 million pilot brewery and packaging facility within its Milwaukee Technical Centre. The Miller Valley Brewery can brew and package up to 10 barrels of beer or other malt-based beverages at a time and will enable Miller to improve its capabilities in new product development. Is the opening of the Miller Valley Brewery unrelated to the fact that last year Miller decided to pull out of its several microbreweries scattered across the country? We think, we should be told.
In December, Miller announced its decision to sell the Celis Brewery and the Celis trademark, whose 100 % ownership it had only acquired in April as part of a contractual obligation. Terms of the transaction were not disclosed..

It’s the season...

... to divest of sports teams. Whether it’s hockey teams (Molson) or soccer teams (Grupo Modelo), it’s white hankies and a dab at the eyes. Grupo Modelo announced the sale of Deportivo Toluca soccer team to Valentin Diez Morodo, a member of Grupo Modelo’s Board of Directors. The terms of the transaction were not disclosed. Like Molson, Grupo Modelo, the brewer of Corona Extra, will continue to focus on its core business. But the group will continue to support the team by means of a sponsorship contract, which will promote the Grupo Modelo brands in the next few years. Moreover, Grupo Modelo will maintain its investment in the Nemesio Diez Stadium, the home of the Deportivo Toluca team.

Old friends

For an estimated sum of US$224 million, Anheuser-Busch purchased approx. 14 % of Compania Cervecerias Unidas (CCU), a beverage company operating in Chile and neighbouring Argentina. According to Business Wire, Anheuser-Busch (A-B) and CCU have been partners in Argentina for five years where A-B holds an 11 % stake in CCU’s local subsidiary. In Argentina CCU brews the Budweiser brand which is also exported to Chile and Paraguay.
As elsewhere in Latin America, there exists a duopoly in the Chilean beer market with CCU controlling 90 % and Quil-mes 9 % through its subsidiary Cerveceria Chile.
CCU was founded in 1902 and produces more than 5 million hl of beer annually. Beer accounts for 55 % of CCU’s revenues.58 % in CCU. As we reported, the merger was eventually called off..

Phew, it’s done

They play it by the book. As the financial markets have let it known that they prefer focussed companies to heavily diversified ones, Molson Inc. decided to sell its majority interest in the Montreal hockey club Canadiens - after "a thorough examination of its (Molson’s) role in the sports and entertainment industry", as it was put. Since June last year, prospective buyers have been more than welcome. In the end, Colorado businessman George N. Gillett Jr. made the deal and purchased an 80.1 % controlling interest in the hockey team and 100 % of the Molson Centre in a deal valued at $275 million. Molson will retain a 19.9 % stake in the hockey team and receive a total of $190 million in cash. Daniel J. This will give Montrealers and Canadiens fans everywhere a reason to celebrate..

Beer consumption levels off

Beer consumption in Argentina has remained constant for years at 12.5 million hl. A small increase of 1 % was registered in 2000. Market experts predict that per-capita consumption will rise from a current 34 l to 45 l per head in the next six years.
Brewing groups are in addition going for diversification. Quilmes Industrial, the market leader, has a 70 % market share in beer, 28 % in soft drinks, 24 % in table water. Quilmes has acquired Baesa, the most important Pepsi-Cola bottler in the country. CCU of Chile has a 12 % market share in beer in Argentina and is expanding activities in wine growing. Casa Isenbeck, part of the Warsteiner Group, had a market share of 7 % in 2000 and has invested US$15 million to up filling capacities by 25 %..