Why did he bother? In early February 2017, news spread quickly on social media that Matthew Adam of Cincinnati had filed a lawsuit against retailer Walmart, alleging its craft beers under the Trouble Brewing label fail to meet the qualifications for craft beer.
It’s official. Heineken will take over Kirin’s struggling Brazilian subsidiary, the Dutch brewer announced on 13 February 2017. The total consideration to be paid to Kirin for the shares is EUR 664 million (USD 706 million). This corresponds to an estimated enterprise value of EUR 1.0 billion (USD 1.1 billion) for Heineken.
Who would have thought that a beer ad, whose themes are hope, ambition, hard work and self-reliance, could be interpreted as a jibe against President Trump’s policies? Well, it’s all to do with timing.
A group of more than 120 retailers and trade associations, including Walmart, Target and Best Buy, launched a coalition on 1 February 2017. The coalition, called “Americans for Affordable Products”, is pushing back against the proposed “Border-Adjustment Tax” (BAT) which would subject imports to US taxes. The coalition fears it will increase the cost of clothing, food, medicine, gas, and other essential items that Americans rely on.
In the war of words over President Trump’s proposed 20 percent border tax for goods from Mexico, which would help pay for a wall between the US and Mexico, the fact that the tariff could eventually be applied to all countries with which the U.S. has a trade deficit went somewhat unnoticed.
Funny they should say that. The maker of Guinness stout, Johnnie Walker and Smirnoff, on 31 January 2017 announced that it wants to build a brewery and taproom at its former whiskey bottling plant near Relay in southern Baltimore County. It would be Guinness’ first US brewery in more than 60 years.
Good grief! Has Wall Street fallen prey to superstition, or are investors just desperate for a deal? At the end of January 2017 several business media reported that it was time for Jorge Paulo Lemann to get back in the hunt. Mr Lemann, 77, is one of the owners of 3G Capital, which also controls a large chunk of AB-InBev.
If the going gets tough – sell. This seems to be Kirin’s approach to its struggling business in Brazil. Since the middle of January media have been abuzz with rumours that Japan’s Kirin Holdings will dispose of its Brazilian beer operations to Heineken as soon as possible.
It may be an unfair comparison, but a pertinent one. When Boston Beer reports its full year results in February 2017, the craft brewer is expected to record lower year-over-year revenue. That would be a first for Boston Beer since 2003.
Latest data by Beer Marketer’s Insights suggest that in 2016 beer sales were up just 0.4 percent over 2015. According to estimates, AB-InBev’s beer volumes dropped 1 percent, MillerCoors’ was down 1.7 percent, while Constellation’s beer sales rose a whopping 14.4 percent.