E-Malt.com News article: 4311

Denmark: Denmark's second-largest brewer, the Danish Brewery Group A/S, announced on Thursday, February 24, it would seek new growth internationally through acquisitions, alliances and partnerships in Northern Europe and Italy and will change its name to Royal UNIBREW.

On February 24 The Danish Brewery Group published its New Strategic Plan to ensure profitable revenue growth from some DKK 3 billion today to at least DKK 4.5 billion ($801.8 million) over 3 years. The company communicated that after it has successfully achieved the targets, which were part of V8 and V8 Next, the Group now launches its new Strategic Plan, MACH II, which is titled ”value creation through profitable, international growth”.

Under its plan, The Danish Brewery Group expects to see annual organic growth of some 3 %, and therefore the remaining growth is to be created through acquisitions, alliances and partnerships, the company said. It is the Group’s intention that the existing shareholders’ position with the Company should not be diluted as a result of new acquisitions. Consequently, the objective is to ensure long-term growth in the market value of The Danish Brewery Group while enabling a current return to shareholders by way of dividend and share repurchases.

Profitable revenue growth from some DKK 3 billion (2004) to at least DKK 4.5 billion (2007) is to be ensured through 3% organic growth in The Danish Brewery Group’s focus markets: the Nordic countries, the Baltic countries, Germany, Italy, Canada; and in the international malt drinks markets: the Caribbean, Africa and the UK. Additional growth is to be achieved through acquisitions, alliances and partnerships in the following areas: Northern Europe, Italy and the international malt drinks markets. Within 3 years of being acquired, acquisitions must show two-digit ROIC and profit margin. "The Group has healthy financial resources to enable the acquisition strategy. Acquisitions will primarily be financed by own funds and borrowing," it said in a statement.

As part of a new strategic plan the Brewery Group said it would change its name to Royal UNIBREW and introduction of new slogan: ”All your favourites” signalling The Danish Brewery Group’s wide range of quality products.

The group is dwarfed in its home market by Carlsberg, the world's sixth-largest brewer, but owns several well-known domestic beer brands, including Faxe and Ceres, Reuters commented.

European brewers, including Carlsberg with a domestic market share of 64 percent, have been seeking growth outside mature western European markets through ventures into eastern Europe and Asia.

The Danish Brewery Group A/S is Scandinavia's second-largest brewery group comprising four Danish and two Lithuanian breweries, a Latvian soft drinks producer and a Latvian brewery. The Danish breweries are Albani Bryggerierne, Ceres Bryggerierne, Faxe Bryggeri and Maribo Bryghus. The Lithuanian breweries are Tauras and Kalnapilis and in Latvia the Group owns the soft drinks producer Cido and the Lacplesa brewery. In Norway, The Danish Brewery Group holds 25% of Hansa Borg Bryggerierne, which also produces some of the Group's products under licence. Furthermore, the Group's products are produced under licence in the Caribbean and Africa. The Danish Brewery Group has approx. 2,100 employees worldwide. The Danish Brewery Group exports to approx. 65 countries throughout the world.


26 February, 2005