E-Malt.com News article: 791

Interbrew's new boss said on Wednesday the brewer would ease up on its spending spree to focus on increasing its business internally in an apparent move to ease investor concerns about its costly acquisition strategy, according to Reuters. "The pace (of expansion) will slow down," John Brock told a news conference, commenting on the drop in profits in 2002 of the world's third largest brewer.

Shares in Interbrew, known for global brands Stella Artois and Beck's, have suffered from concerns that the brewer is spending too much money on acquisitions and not enough time integrating them into its operations.

Interbrew, striving to lead a consolidation wave in the fragmented industry, faced criticism for the 1.58 billion euros ($1.7 billion) it paid for German brewer Beck's in 2001. Interbrew shares ended 0.67% higher at 17.97 euros in Brussels.

Although they have gained more than 20 percent this past week ahead of Brock's first public appearance since taking the job last month, they are down 20.1% this year and 11.3% below the European sector index.

Analysts said Interbrew's costly acquisitions had inflated sector valuations and made it an expensive undertaking for its rivals to bid for smaller European brewers.

News of the disclosure put more pressure on its stock as its communications policy came into question.

He also forecast sales in Russia would grow faster than an expected six percent rise for the entire market as Interbrew recovers business lost by a delay in bringing out beer in plastic or PET bottles.



20 March, 2003