InBev have reaffirmed their interest in Anheuser-Busch via a letter prodding a response from the American company. The unsolicited takeover bid, which values Anheuser-Busch at US$46.3b, was made two weeks ago, but Anheuser-Busch has since remained coy about their possible response. It has been reported that members of the Busch family are divided about the potential takeover, while the company’s second largest shareholder, billionaire investor Warren Buffett, had been in support of... ...Read more »
Consolidation in the beer industry has been a noticeable trend over the past decade but the potential takeover of Anheuser-Busch by InBev would certainly shake the sector up. If the deal goes ahead it would merge together the second and third largest brewers in the world, creating one of the five largest consumer products companies and the largest brewing corporation - eclipsing current leader SABMiller. The audacious offer by InBev, owner of the Beck’s, Stella Artois and Hoegaarden... ...Read more »
SABMiller and Molson Coors have received clearance from the US Department of Justice to proceed with the combination of their respective US and Puerto Rico operations to form a new company called MillerCoors. SABMiller and Molson Coors, the second and third largest brewers in the US, expect the transaction to generate approximately $500 million in annual cost synergies. The deal, symbolic of the consolidation taking place in the beer industry, is likely to result in the two largest US brewers holding... ...Read more »
In response to rising production costs some brewers are shifting their business focus to target the potentially lucrative ‘luxury’ market, while many others look to the premium market to drive growth. Foster’s has recently created Crown Ambassador Reserve lager to kick-start their push into the “luxury” category, according to AAP. The lager, which will be released as a limited edition of 5000, will retail at a price of $60. The issue with creating such a beer, though,... ...Read more »
Rumours abound about a major takeover in the beer industry. InBev, the Belgian-based owner of the Beck’s, Stella Artois and Hoegaarden brands, is apparently considering a $46b bid for US brewer Anheuser-Busch. The takeover speculation, reported at the end of last week by the Financial Times, led Anheuser-Busch to a 52 week high on the New York Stock Exchange. Anheuser-Busch, which manages the Budweiser brand, is expected to try and stave-off any unsolicited bids from InBev, but the... ...Read more »
Premium alcoholic beverages company, Lion Nathan, has posted strong profit figures despite adverse weather conditions, increasing commodity prices and higher fuel costs. Their operating net profit after tax (NPAT) increased by 7.0% to $167.7 million for the six months to 31 March 2008, with sales rises of 7.9% attributed to their successful attempts to get drinkers to shift to higher equity national and premium brands. “The strong revenue growth reflects successful brand investment... ...Read more »
Pacific Beverages, a brand under the Coca-Cola Amatil banner, have announced that they are to build a new brewery in NSW to help continue their push into the alcoholic beverage industry. The brewery will be built with the help of their joint venture partner, SABMiller. The announcement follows Pacific Beverages’ acquisition last December of the Hunter-based premium beer brands, Bluetongue and Bondi Blonde from majority Bluetongue shareholder John Singleton, and is considered the next... ...Read more »
In the wake of the 70% tax increase on ‘ready to drink’ alcoholic beverages (RTD’s) which has shocked consumers and industry professionals alike, the Rudd government is also set to levy a higher tax on beer and wine. Such an action threatens the future of the local micro brewing industry, according to Snowy Mountains Brewery director Kevin O’Neill. “This tax comes on top of 50% excise already paid per carton and makes it almost impossible to survive for most in... ...Read more »
Alcoa, the company that invented the pull-top aluminum can, announced on Friday that it has worked with Ball Corporation and Coors Brewing Company to introduce the Vented Wide Mouth Can - the industry’s first-ever can with a built-in vent that enables consumers to enjoy a smoother pour. “In 1962, Alcoa invented the first pull-top aluminum can, which revolutionized the beer and soft drink industries,” said Ann Whitty, Vice President and General Manager of Alcoa Rigid Packaging... ...Read more »
ABS data released yesterday reveals that Australians over 15 are drinking about the same amount of alcohol on a per capita basis as they were last year. However, the type of drinks we are drinking has changed slightly. The popularity of beer and spirits have remained fairly constant but the burgeoning popularity of pre-mixed drinks has not let-up with its share of the alcohol market increasing at the expense of wine. Additionally, the type of beer being consumed has become stronger with a strong... ...Read more »