E-Malt.com News article: Hong Kong: San Miguel Brewery’s Hong Kong subsidiary to develop and promote existing and new products following loss of distribution contract with AB InBev

San Miguel Brewery’s Hong Kong-listed subsidiary will continue to develop and promote existing and new products to cushion the impact of the expiration and non-renewal of its distribution agreement with Anheuser-Busch, the world’s largest brewer, its parent company said.

“The company will continue its current efforts in developing and promoting products under its own principal brands as well as the new premium/craft brands being distributed by the company,” San Miguel Brewery Inc. said.

The Hong Kong-listed unit told its shareholders that in the first half of the year, it has incurred a consolidated net loss due to lower volume as a result of the termination of the agreement with Anheuser-Busch InBev China Sales Co. Ltd and Anheuser-Busch InBev International.

The company also attributed the loss to the fact that “the operating costs associated with the sales and marketing operations of the affected products are sustained, redirected and reinvested in the development of new premium/craft brands in the company’s portfolio. It is a key business strategy of the company to maintain a broad portfolio of brands.”

The end of the distribution agreement, which was announced last year, closes more than 15 years of partnership between San Miguel and Anheuser-Busch.

Anheuser-Busch has selected as its exclusive distributor Jebsen Beverage Co. Ltd, a Hong Kong-based distribution and marketing company that distributes imported premium beer brands in the Greater China region, the company said.

With the end of the agreement, San Miguel no longer distributes Anheuser-Busch products under the brand names “Budweiser” and “Harbin” after Nov. 17 and “Beck’s,” “Boddingtons,” “Hoegaarden,” “Leffe,” “Lowenbrau” and “Stella Artois.”

“The company is in the process of finalizing the interim results of the group for the six months ended June 30, 2015. The information contained in this announcement is only based on a preliminary assessment by the company on the unaudited consolidated management accounts of the group for the six months ended June 30, 2015 and the information currently available to the company which may be subject to further amendments. The company expects to announce its consolidated interim results for the six months ended June 30, 2015 on Aug. 5, 2015,” the Hong Kong unit said in its profit warning.



15 July, 2015