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 %..