For the nine months January to September 2000 Austria’s largest brewer, BBAG Österreichische Brau-Beteiligungs AG, recorded a 8.2 % increase of turnover to EUR 708.6 million and a 15 % rise in operating profit to EUR 63.1 million over the same period in 1999. Sales growth in central and eastern European markets boosted profits growth while the domestic market remained flat.

In the 1999/2000 business year, beer production in Austria rose to 9.26 million hl (+ 1 %). Imports at 0.48 million hl (- 3 %) and exports at 0.50 million hl (- 8 %) both showed definite drops. Per-capita consumption at 114.1 l was 0.8 l above that of the previous year.

Key institutional investors are unhappy with the slow pace of change at Scottish&Newcastle (S&N), the UK’s largest brewer, and have issued a warning that S&N’s management is failing to deliver on promises to turn around the pubs and brewing business. Brian Stewart, S&N’s chairman, has been singled out for target shooting by the investors. The accusation: he seems to appear less dynamic and focussed than other chairmen in the brewing industry.
S&N’s decision not to pull out of pubs altogether has been interpreted by shareholders that S&N was confused about its future direction.
In January, S&N Retail, the pub and restaurant arm of S&N, confirmed that it was planning to dispose of 920 of its 2,373 managed houses and axe 1,300 jobs at its Scottish Courage unit..

Question: How do you bring up your share price? Answer: By starting a rumour that there is a merger or take-over in the offing. South African Breweries (SAB) reported first half pre-tax profits down to US$310 million from US$319 million on turnover down to US$2.11 billion from US$2.98 billion for the period ending 30 September 2000.
Its share price immediately went up when a rumour started making the rounds that SAB would form some kind of partnership with Belgium’s Interbrew. That took analysts by surprise who still had not digested the news that sales volume declined 6 % in South Africa due to a subdued economy and a shift in consumer spending. SAB’s management also hinted at a possible IPO (Initial Public Offering) to fund further acquisitions..

Coors Brewing Co. in the UK is planning a national roll-out of its Coors Light brand later this year. In order to avoid being confused with a low calorie beer, Coors Light will be promoted as a 4.5% ABV full strength lager.
Having been test-marketed in Scotland and Northern Ireland with the tag line "full strength goes down easy", Coors is prepared to spend an estimated £12 million on the national campaign.
Let’s wait and see if its Light brand goes down easy instead of down full stop. After all, Anheuser-Busch had to take its brand Bud Light (4.3% ABV) off the UK market after two years of disappointing sales. Anheuser-Busch admitted that many British beer drinkers were confused by the word "light" because to them it meant "low alcohol" rather than "low calorie".

The powers that be came down on Interbrew like a ton of bricks when at the beginning of January the UK Secretary of State for Trade and Industry, Stephen Byers, decided to block the Interbrew/Bass deal. Arguing that last year’s £2.3 billion take-over would operate against the public interest, i.e. create an unacceptable level of concentration at both production and distribution levels, Byers has ordered Interbrew to sell Bass Brewers to a buyer approved by the Director General of Fair Trading (DGFT).
“The Competition Commission found that the merger would strengthen Interbrew’s market position which would own four of the top ten selling beer brand,” Byer’s statement read. Interbrew was given six months to abide by the British regulators’ decision.5 billion of its £2.3 billion outlay..

In order to comply with competition laws, Sun Interbrew will sell its controlling stake in the Ukraine’s Krym Brewery. Thus Sun Interbrew will get the government’s OK on its recent acquisition of an 81 % stake in Rohan Brewery, the country’s second largest brewery. This year Sun Interbrew plans to invest EUR 11 million to improve production at Rohan and EUR 55 million towards the construction of a malthouse. Rohan was founded in 1989 and began producing beer in 1993. Its 2000 production capacity was 2.5 million hl of beer.

Tough luck. The competition authorities have spoken - and Carlsberg and Orkla have listened ... and obeyed. What they have had to listen to may not have pleased the two parties, who decided to tie the knot last summer into what will be Carlsberg Breweries and one of top 5 global brewers. But what could they do? The Swedish competition authorities have conditionally approved that Carlsberg A/S and Orkla ASA merge their Swedish breweries, Falcon and Pripps respectively, into Carlsberg Sverige AB. This will be a step towards establishing Carlsberg Breweries which will be jointly owned 60 % by Carlsberg A/S and 40 % by Orkla. Moreover, Carlsberg A/S has to sell its indirect ownership stake in Coca-Cola Drycker Sverige and Falcon has to end its joint distribution with Coca-Cola Drycker Sverige.

St. Petersburg-based Vena Brewery, which is 66.6 % owned by Finnish brewer Sinebrychoff and 33.3 % by the European Bank of Reconstruction and Development, is planning to bring up capacity to 3.0 million hl by 2002. Last year Vena Brewery sold 540,000 hl of beer. For 2001, beer output is estimated to reach 850,000 hl with capacity standing at 1.0 million hl. Vena Brewery sells eight beer brands and four soft drink brands to the markets of St. Petersburg (60 %) and Moscow (30%); only 10% of its output is sold in 26 regions in Russia.

Or so they claim. Schöfferhofer wheat beer may only be Germany’s No. 4 wheat beer brand, but thanks to Binding Brewery’s generously backing, the brand ranks No. 2 as concerns advertising budget.
Interestingly, Schöfferhofer’s advertising blitz, estimated at DM12 million in 2000, has helped popularise the segment in general.
Contrary to Bavarian wheat beer brands cashing in on Bavarian joie de vivre, Schöfferhofer has cashed in on a female voice, which gives the brand a decidedly sexy image. Schöfferhofer’s famous TV ads feature a sultry female voice with a strong French accent who sends her German boyfriend a letter saying that she harbours fond memories of Schöfferhofer sparkling so refreshingly in her belly button..