SABMiller plc and Molson Coors Brewing Company reported on February, 10 double-digit growth in profit on a pro forma basis at MillerCoors behind strong pricing, solid cost management and an acceleration of synergies targets in the fourth quarter ended December 31, 2008.

"While the U.S. beer category softened in the fourth quarter, we increased pricing and net revenue to deliver strong profit growth," said MillerCoors Chief Executive Officer Leo Kiely. "Our early progress with integration, including our efforts to assemble the most talented team in the beer business, is helping us to accelerate the timing of our 2009 synergies."

During the period, MillerCoors overall sales-to-retailers (STR) declined 2.3 percent, reflecting a weaker quarter for the industry and softness in Miller Lite and certain above-premium brands. Domestic sales-to-wholesalers (STWs) dropped 4.3 percent, driven largely by a reduction in distributor inventory levels and lower sales to retail.

Pricing remained strong as domestic net sales per barrel, excluding contract brewing and company-owned distributor sales, increased 8.0 percent versus the prior year driven by strong front line pricing, reductions in discounting and favourable mix. Front-line pricing in the period benefited from an acceleration of general price increases, which took effect in September and October ...More Info

Japan’s Kirin Brewery posted on February, 10 its unaudited results for the fiscal year ended December, 31, 2008.

The brewer said that during the period under review it pursued its product strategy of strengthening its core products, building presence in low-carbohydrate products, and increasing overall sales.

Japan’s overall market of beer, happoshu and new genre declined in volume during 2008, influenced by such factors as price increases implemented by various breweries to reflect high raw materials costs, and a worsening of consumer sentient as the economy slowed, according to Kirin.

The brewer’s sales of beer declined year on year, partly reflecting the solid sales and new product launches that boosted performance in the previous year. Happoshu volumes were slightly lower, although sales volumes in the low sugar category grew significantly, driving the overall market. Of particular note was the success of Kirin ZERO, which far exceeded initial targets after its launch in February, 2008, Kirin said.

In the fast-growing market for new genre products (no-malt beers), sales of market leader Kirin Nodogoshi Nama increased as consumers gravitated to core brands, and new Kirin products such as Kirin Sparkling Hop and Kirin Strong Seven generated excellent consumer support.

Kirin said it its overseas alcohol beverages business, ...More Info

Molson Coors Brewing Company reported the results for the full fiscal year 2008 and the fourth quarter of 2008 on February, 10.

The brewer said it had achieved higher worldwide beer volume and underlying income in the full fiscal year, though its pro forma worldwide beer volume and underlying income declined due to unfavourable foreign currency and slowing industry trends.

“We looked at this past year as an opportunity to continue to strengthen our financial base and position ourselves for long-term growth,” said Peter Swinburn, Molson Coors president and chief executive officer. “In 2008, we invested substantially in our strategic brands, increased global beer volume, achieved higher pricing in all of our markets, and exceeded our cost-reduction targets, all while successfully executing major strategic initiatives like the launch of MillerCoors.”

“Our lower fourth quarter financial results reflect the combined challenges of a much stronger U.S. dollar versus a year ago, significant commodity inflation, and lower sales volume in our major markets. Foreign currency movements alone accounted for more than 55% of the year-over-year decline in fourth quarter profit, and input cost inflation across all of our businesses added another $41 million of headwinds to the quarter.”

“In this economic environment, we remain committed to ...More Info

India’s beer industry is finally witnessing a relative slowdown after three straight years of growth. However, the phenomenon is not necessarily resulting from recession, The Hindus Business Line reported on February, 7.

According to Mr Sundeep Kumar, SABMiller’s Director – Corporate Communications and Affairs and the All India Brewers’ Association Vice-President, year-to-date industry growth for 2008-09 was 8.5 per cent while for 2007-08, the industry grew 14 per cent.

For the first six months of 2008-09, the gap was larger with the industry registering a growth of 6.9 per cent compared with 16 per cent same period last year, Mr Kumar said.

Except the northern region, beer sales have been declining more because of issues such as the standoff between the industry and the Andhra Pradesh Government and increase in taxes in Maharashtra. Also, the severity of monsoon had shortened the peak selling summer season leading to lesser growth, he added.

SABMiller was hurt more badly than the rest of the industry given its relative importance in their portfolio. Its growth in the southern market year-to-date (April-December, 2008) was negative while the industry grew 5 per cent in the region. But it made up with higher sales in the northern region with growth of ...More Info

State-owned Czech brewery Budvar said it had boosted its annual production by 4.5 percent despite global economic problems, The Associated Press communicated on February, 10.

Budejovicky Budvar NP said it produced 1.312 million hl of beer in 2008, compared with 1.253 million hl the previous year.

Exports were down 1 percent at 581,522 hl, still the second highest number in the brewer's history following the previous record year, the company said in a statement. Budvar exported its beer to 54 countries last year.

"Given the economic development in recent months, we are satisfied with the export results," said Renata Pankova, head of Budvar's export sales department. She said the brewer managed to maintain its position in key markets, including Britain and Germany.

Financial details for 2008 are expected to be announced in April, Budvar spokesman Petr Samec said.

Budvar fought for years with American brewer Anheuser-Busch in a number of countries over use of the famous Budweiser brand, to which both companies claim a historical right. Anheuser-Busch was taken over by Belgian brewer InBev last year to form Anheuser-Busch InBev, the world's largest beer company. Budvar said the sale did not affect the legal battle.

The Czech government began a process that could lead to Budvar's ...More Info

US Beer Institute and the Brewers Association expressed their content with the introduction of H.R. 836 the Brewers Excise and Economic Relief (BEER) Act by members of the United States House of Representatives.

The Act effectively returns the federal beer excise tax back to its pre-1991 level of $9 per barrel.

"There is strong, industry-wide support for this legislation, and we thank Congress for its bipartisan effort to institute tax fairness for one of the most productive sectors of the American economy," said Tom Long, President and Chief Commercial Officer of MillerCoors, and Chairman of the Beer Institute. "We commend Reps. Earl Pomeroy and Tom Latham for their leadership on this important issue, and we urge Congress to help provide relief to low- and middle-income families and businesses in America's brewing community by passing this legislation as quickly as possible."

Today, there are over 2,053 brewing companies in the United States operated by national brewers, regional brewers, regional craft brewers, microbrewers, and brewpubs. These job-creating businesses are in every state in the nation. In fact, a majority of Americans live within 10 miles of a brewery. In addition to reducing the tax burden on large brewers and beer importers the legislation introduced ...More Info

Japan’s second-largest brewer Kirin on February, 9 announced its withdrawal of the proposal to merge with Coca-Cola Amatil.

Kirin Holdings unit Lion Nathan Ltd., which is Australia's second largest brewer, had made a 7.6 billion-dollar (5.1 billion US) bid in November to buy Coca-Cola Amatil (CCA) and form Australia's largest beverage empire.

CCA considered the bid too low. Kirin said that the US-based Coca-Cola Company, which has a 30 percent stake in CCA, had ceased discussions on its offer

"We made a very attractive offer at a 30 percent premium in very challenging market conditions," Lion Nathan, the Sydney-based Kirin affiliate, said in a statement.

"It is disappointing that CCA's shareholders will not have the opportunity to consider our proposal and enjoy the benefits that the merger would have delivered," it said.

The deal would have brought under one roof in Australia household brands such as Coca-Cola, Toohey's beer, XXXX lager, Mount Franklin bottled water and James Boag beer.

Japanese brewers have increasingly sought to expand overseas to weather a shrinking market at home, where the population is greying and more people are turning to wine and other drinks.

Brewer Saku Olletehas has retained its position as the market leader in the Estonian beer sector, Namnews cited on February, 9 a new survey by AC Nielsen.

According to the market research agency, Saku had a 45.7% share of the local beer market in 2008, followed by A. Le Coq with a market share of 38.1%.

The country’s leading beer brands are Saku Originaal, Rock and AleCoq Premium. Saku claimed that its market share in the premium beer segment had grown beyond 50%.

According to Saku Õlletehas marketing director Margus Kastein, for the past few years Saku has mostly focused on export. Last year, Saku’s export grew 24 pct.

Kastein said the Estonian beer market decreased last year by 8 pct. “Rainy summer and the economic downturn that started in the autumn were the reasons,” explained Kastein.

Kastein said that Saku Õlletehas exports its production to Finland, Canada, Iceland, Germany, UK and Ireland. Negotiations regarding export are currently underway with Australia and Nigeria.

Canadian Agriculture Minister Gerry Ritz denounced Canadian Wheat Board’s decision to close down its bulk barley pool in the interests of keeping prices high for those already in the program, Reuters communicated on February, 10.

"I'm very concerned when I see them put out a press release saying they're closing the bulk barley pool because they don't want to destroy the high price they've got," Ritz told the House of Commons agriculture committee.

He noted that the board was forcing farmers to now sell their malting barley via CashPlus, a CWB program that offers an upfront cash price.

"If the Wheat Board is not offering a pool, they're going against their mandate, so I have to have that discussion with the Wheat Board," Ritz said.

The board announced its decision to close the bulk barley pool on January 29, saying bulk exports of Western Canadian malting barley would be sourced mainly through cash purchases for the remainder of the crop year.

Ritz did not elaborate, but appeared to object to the idea that while those farmers who had sold into the pool would be getting a good price, those who would have to take cash would not be getting nearly as high a return.

The minority ...More Info