Top Industry News 

• The Russian brewing force, Baltika, has published its financial results for 2002 year based on International Standards GAAP... Click here
  
  
• About US$ 300 million was invested in Russian brewing branch during 2002 year, Alexander Pavlov... Click here
  
  
• Turk Tuborg, the Turkish brewing force, mainly controlled by the Danish brewer, Carlsberg registered a net profit of TRL 4 trillion... Click here
  
  
• Carlsberg Breweries A/S, the Danish brewing force, now controls 75% of its Polish subsidiary, Carlsberg Okocim S.A... Click here
  
  
• The world per annum sales of all kinds of beer (including nonalcoholic) are evaluated at more than US$ 352 billion... Click here
  
  
• Sun Interbrew, Russian based brewer, part of the Belgian brewing combine, Interbrew, posted a net loss according to generally accepted accounting principles (GAAP) of €3.6m ... Click here
  
  
• According to a report from the World Markets Research Centre (WMRC), an Appeal Court in Kiev has ruled against the Ukrainian brewer, Obolon... Click here

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2. Industry news

The Russian brewing force, Baltika, has published its financial results for 2002 year based on International Standards GAAP (US generally accepted accounting principles). The company has increased its sales volumes by 14.5% versus 2001 year. Sales of beer rose from 14.008 million hl in 2001 to 16.036 million hl in 2002. Beer sales in Russia increased by 11%. Baltika managed to raise its quota in Russian beer market by 0.6% up to 22%. Company net profit rose by 8% and reached the value of US$ 139.8 million in 2002. The operational profit also increased by 8% up to US$ 190.6 million.

About US$ 300 million was invested in Russian brewing branch during 2002 year, Alexander Pavlov, the deputy head of the Agriculture Ministry's food industry department, reported in a statement. According to the speaker, foreign investments accounted for $USD 150 of total investments volume. Alexander Pavlov also mentioned that a 10-12% per year growth of beer production is expected in the next 4-5 years. Anatolii Belichenco, the President of the Union of nonalcoholic beverages producers, supposes a 7-10% growth per year of brewing branch in Russia. He reported that, according to the Union estimation, beer output in 2002 came to 70.5 million hl of beer, in 2003 it may come to 75.8 million hl, in 2004 – 79.6 million hl and in 2005 – 82.8 million hl.

Turk Tuborg, the Turkish brewing force, mainly controlled by the Danish brewer, Carlsberg registered a net profit of TRL 4 trillion (EUR 2.2 million) in 2002, against a net loss of TRL 14 trillion (EUR 7.4 million) in 2001, Turkish News Digest reported. According to the same source, operating profit has reached the value of TRL 3.6 trillion (EUR 1.9 million) versus an operating loss of TR L5.4 trillion (EUR 2.9 million) in 2001. Sales at Turk Tuborg rose to TRL 104.7 trillion (EUR 55.6 million) in 2002 from TRL 56.1 trillion (EUR 26.8 million) from 2001. Exports rose from TRL 3.5 trillion (EUR 1.9 million) to TRL4.8 trillion (EUR 2.5 million).

Carlsberg Breweries A/S, the Danish brewing force, now controls 75% of its Polish subsidiary, Carlsberg Okocim S.A., after the Danish brewery has acquired another 3.5% of the share capital in Polish brewer. The Danish company has bought the additional 1 million shares (3.5%) from the German brewery Bitburger. The shares were acquired at a price of DKK 28 million, the company reported and added that the acquisition will not influence the financial results for 2003. Okocim, holds around 14% of the Polish beer market. Last year Okocim posted an operating profit of PLN7.6m and a net profit of PLN2.8m. In 2001, Carlsberg has undertaken not to increase its stake beyond a 75% threshold and keep Okocim as a publicly traded company until Poland joins the EU.

The world per annum sales of all kinds of beer (including nonalcoholic) are evaluated at more than US$ 352 billion. Compared to this figure the market of dark beer is relatively small – about US$6.3 billion. However, this figure may change in next years. Moreover, South Africa may outrun the leaders of dark beer consumption: Ireland (269 million litres per year absolute expression) and United Kingdom (248 million litres). According to a Datamonitor statement, that may happen by 2006. In 2002 South Africa took the third place on dark beer consumption (177 million litres per year). Till then the third place has been taken by USA. For the comparison, Ireland consumes 76 litres of dark beer per annum per capita, South Africa – 4.5 litres, USA – 0.5 litres.

Sun Interbrew, Russian based brewer, part of the Belgian brewing combine, Interbrew, posted a net loss according to generally accepted accounting principles (GAAP) of €3.6m for 2002, against a net profit of €22.4m in 2001. Analysts had been forecasting a GAAP net profit of €8.1m in 2002. Revenues rose by 10% to €433m, broadly in line analysts' forecasts. However, EBITDA fell by 17%, against analysts' forecasts of a drop of around 13%. Beer sales were up 5.8% at 1.25 billion litres, but the company's share of the Russian beer market was reported to have fallen from 12.8% to 12.1%. Sun Interbrew attributed the disappointing performance to the depreciation of local currencies "which reduced profitability by €27.1m," coupled with a write-off of €6.7m of assets. The company said the fourth quarter had been particularly disappointing, with the brewer reporting a fourth-quarter net loss of €10.5m against a net profit of €2.43m in the corresponding period in 2001.

According to a report from the World Markets Research Centre (WMRC), an Appeal Court in Kiev has ruled against the Ukrainian brewer, Obolon, in a case relating to the purchase of Obolon shares by rival brewer, Sarmat. It was alleged that Sarmat had acquired shares from Obolon employees using deceptive means involving an unclear instrument, as it attempted to acquire the company. The ruling is binding but is only one of several lawsuits Obolon has brought against Sarmat in a bid to prevent a hostile takeover.