E-Malt.com News article: 2596

Interbrew, the Belgian brewing giant, the owner of Stella Artois brand, may close or sell some of its breweries to boost profitability as it merges with Brazilian firm Cia de Bebidas das Americas (AmBev), chief executive John Brock has admitted. John Brock said it would not need all of its 75 worldwide sites. Interbrew, whose merger with AmBev will create the world's second largest brewer, is chasing the global number one - US giant Anheuser-Busch, BBC wrote in a statement. In the UK, Stella Artois is brewed in Newport, Wales.

"We have got to get a more integrated business that is far more cost-effective than it is today." Mr Brock said Interbrew had yet to decide how many, and exactly which, breweries it would close. "All options are open," said Mr Brock, who wants Interbrew to become as profitable as Anheuser-Busch - the brewer of Budweiser - in three or four years' time. "We have a good idea of where we are, and we want to be as good as Anheuser-Busch," he said.

The merger between Interbrew and AmBev, first announced in March, will give the company a global market share of 14%. Brazil also offers Interbrew a market with an increasing thirst for beer at a time when European drinkers are drying up. However, some analysts have questioned the merger, accusing Interbrew of going back on a pledge to consolidate previous acquisitions. Mr Brock disagrees, adding that the merger will result in cost savings of 280m euros (£186m; $340m) a year from 2006.

Interbrew also revealed plans to market AmBev’s Brahma premium lager in Europe and North America within the next 12 months. The group’s Stella Artois brand will be introduced into Argentina and Venezuela, while Beck’s is set to make its South American debut in Brazil.


04 May, 2004