SABMiller plc, one of the world’s leading brewers, announces that its UK sales are rising strongly, driven by an emerging consumer preference for more exotic and distinctive premium beers, according to company’s press release, December 15.

In the six months to September 2007, sales of SABMiller’s UK subsidiary, Miller Brands, rose by 42%, led by Italian brand Peroni Nastro Azzurro, Pilsner Urquell from the Czech Republic and Polish brands Tyskie and Lech. The group’s Peruvian brand, Cusqueña, which is imported directly from Peru, has also seen UK sales rise by 35%, with strong gains made in London and Manchester.

“The UK premium lager market is experiencing unprecedented change,” says Alan Clark, Managing Director of SABMiller Europe. “Some of the country’s most enduring premium beers are seeing declines following a number of years of aggressive expansion. As these big brands lose their allure, consumers are experimenting with a new generation of more distinctive beers, a development which SABMiller is well-placed to capitalise on.”

Gary Whitlie, Managing Director of Miller Brands, continues:

“A new space is opening up at the top end of the UK premium lager market, in which beers with distinctive taste profiles, authentic provenance and genuine import status are thriving. ...More Info

Kingway Brewery Holdings Limited will be likely to suffer a loss for the full year 2007, the Hong Kong-listed company recently forecasted, according to SinoCast, December 18.

The loss is mainly caused by operating strategies, analyzed a top executive for China Resources Snow Breweries. Kingway have invested CNY 3 billion in building plants in Dongguan, Shantou, Tianjin, Xi'an, and Chengdu in recent two years.

Another major reason is the increasing competition in South China's Guangdong market. The province's beer production capacity has reached 5 million tons currently and output in 2007 will amount to 3.2 million tons, said Guo Yingxin, director of the Guangdong Provincial Alcohol Industry Association Beer Branch.

The production capacity in Guangzhou, the province's capital city, is 1.5 million tons each year. Beer production lines in other cities, like Shenzhen, Shantou, and Foshan, are also being built or expanded.

Profit from per ton beer in the province was between CNY 300 and CNY 400 years ago, five or six times higher than the average level in China. However, it has now slid to over CNY 100, Guo said.

Kingway also changed its product structure in order to snatch a bigger market share, noted a regional manager of the company. The proportion of ...More Info

The beer market is likely to exceed 1.4bn euros next year, although major brewers are not counting on two-digit growth rates in 2008, after this year's record highs, Ziarul Financiar reported December 13.

In fact, multinationals did not expect to register above 10% increases in early 2007, but the hot weather, doubled by PET beer sales and consumers' rising purchasing power led to a sales growth rate of around 20%.

As a result, in line with ZF estimates, based on data released by companies, beer sales are forecast to exceed 21 million hectolitres this year, which would generate a market worth around 1.2bn euros, according to statements made by industry players. However, considering the beer market in the first 9 months of this year increased by 33.3% against the same period last year (according to market research firm MEMRB) the growth rate could exceed 20% in 2007. "(...) Starting next year, the domestic beer market will start posting increases of around 5%," estimates Shachar Shaine, URBB chairman.

Edwin Botterman, Heineken Romania chairman and CEO, shares the same opinion. The most optimistic player on the market is Ursus Breweries, which believes the market will maintain the same growth rate, due to the strong increase ...More Info

SABMiller has successfully wrapped up a legal battle in the US that prevented rolling out of flagship Miller beer in India, The Economic Times reported December 10. A Wisconsin court has dismissed a $500-million lawsuit by India Breweries Inc, a Canada-based entity, against Miller Brewing Company for allegedly backtracking on a 10-year licensing agreement to brew and sell Miller brands in India.

The Toronto-based petitioner said the licensing agreement was signed in 1999 to sell Miller High Life and other brands, and initiated legal proceedings three years ago. When contacted, Sundeep Kumar, director, corporate affairs, SABMiller India, said the company faced no legal hurdles, if it decided on launching Miller in India, after the Wisconsin court summarily dismissed the petition.

The petitioner alleged that it had entered into arrangement with Mohan Meakin Ltd for brewing Miller and had also lined up other brewing options after a Miller team expressed dissatisfaction. However, Miller allegedly dragged its feet on exploring possibilities and rejected the other breweries over trivial alleged deficiencies before terminating the licensing agreement in 2001. South African Breweries (SAB) and Miller Brewing Company merged in 2002, signaling the biggest consolidation in the global brewing industry.

SABMiller is considering the viability of bringing in ...More Info

Following recent representations made by the advisers for S&N, the Panel Executive has been considering the application of Rule 2.4(b) of the Code to the approach by the Consortium to S&N, according to Scottish & Newcastle’s press release, December 17. Following discussions with all parties’ advisers, the Panel Executive has ruled that, unless the Panel Executive consents otherwise, the Consortium must, by 12 noon on 21 January 2008, either announce a firm intention to make an offer for S&N under Rule 2.5 of the Code or announce that it does not intend to make an offer for S&N.

In the event that the Consortium announces that it does not intend to make an offer for S&N, the Consortium and any person acting in concert with it will, except with the consent of the Panel Executive, be bound by the restrictions contained in Rule 2.8 of the Code for six months from the date of such announcement.

Carlsberg has strengthened its position in the beverage market in Laos following the completion of the acquisition of 70% of the shares in Lao Soft Drink Co Ltd. – the bottler of Pepsi in Laos, according to brewer’s press release, December 17. The remaining 30% of the shares are held by the Government of Laos. Holding a 90% market share the company is a major player in the soft drinks market in Laos with brands such as 7-Up and Mirinda.

The production facility is located in the capital Vientiane, and has 290 employees and a capacity of approx. 400,000 hl.

Henrik Juel Andersen, Managing Director of Carlsberg Indochina said: “We believe in the brands and in the Company’s management. It is a very professionally run operation in every aspect, the factory is of international standard, and produces high quality products. Carlsberg is excited about the opportunity to further strengthen the operation in close cooperation with the Government and the Company’s management”. Carlsberg and the Government are already co-operating via the 50/50 joint venture, Lao Beer Co. Ltd. producing the famous Beer Lao, the leading beer brand in Laos.

Vietnam's two breweries will complete their equalization plans and then make initial public offerings (IPOs) in the first quarter of next year, local newspaper Vietnam Investment Review reported, according to Xinhua, December 17.

The Saigon Brewery Corporation (Sabeco) would not choose a foreign strategic partner for its IPO, but the Hanoi Brewery Corporation (Habeco) would, said deputy minister of Industry and Trade Bui Xuan Khu.

He said Carlsberg was chosen as Habeco's foreign strategic investor, and would come in for a 10-percent stake in the northern beer maker. Meanwhile, Sabeco will sell off 20 percent of its chartered capital at its IPO.

Sabeco, Vietnam's biggest brewery, has a chartered capital of 6.4 trillion Vietnamese dong (VND) (400 million U.S. dollars), and Habeco 2.3 trillion VND (nearly 143.8 million dollars). This year, Sabeco is estimated to make total revenues of over eight trillion VND (500 million dollars), and Habeco nearly 2.5 trillion VND (some 156 million dollars).

Vietnam is estimated to consume over two billion liters of beer and alcohol in 2010, up from 1.7 billion liters in 2007, the newspaper said.

Australian malting barley prices are forecast to rise to AU$346 a tonne from AU$328 in 2006/07 and AU$202 in 2005/06, ABARE reported December 19.

"However, the ability of growers to capitalise on these prices has been hampered by poor seasonal conditions," ABARE's executive director, Phillip Glyde, said in the statement.

Vertikalni koordinace a jeji projevy v komoditní vertikale piva E. VESELSKA Mendel University of Agriculture and Forestry, Brno, Czech Republic

Abstract
The paper aims to identify the potential benefits from vertical coordination within the selected commodity chain. The problem is applied to the beer commodity chain because of its high importance in the Czech agri business and foreign trade. On the basis of the vertical analysis of the chosen commodity chain, a mathematic model of consumer price simulation is created and the existence of vertical coordination is verified in the analysed commodity chain. This model assumesthat input price increases are transmitted to consumers. The retail prices of beer a resimulated by holding technology and input-output relationships constant, while production as well as marketing costs change according to the changes in input prices. The simulated retail price is then compared with the actual retail price to indicate productivity gains resulting from vertical coordination passed on to consumers. The result sof the Model of Retail Price Simulation showt hat Czech brewery industry was in the observed period (1994–2002) vertically coordinated. Key words: retail price simulation, vertical coordination, agri-food chain and beer
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