E-Malt.com News article: 3232

UK: The world's largest brewer, the Belgian-based InBev, said on September 9 it aimed to be the top beermaker in Britain during the next ten years and topple current leader Scottish and Newcastle (S&N). InBev, formed last last month from Interbrew's takeover of Brazil's AmBev, has seen its British market share rise due to the growth of Stella Artois and more latterly from Tennent's, and now vies for number two spot with Adolph Coors Co, according to Reuters.

"We would like to be number one, we do have the best brand in Stella Artois and we may get Beck's back early," said InBev's Chief Executive John Brock adding that a ten year time frame to gain leadership would seem appropriate. He expects Stella Artois, Tennent's and Castlemaine beers to continue to gain market share after the group reported volumes of the three brands rose 4.4 percent, 2.9 percent and 19 percent respectively in the first-half of 2004 in a largely stable to slightly higher overall British beer market.

InBev bought Beck's in 2001, but S&N has the exclusive distribution rights for the brand in the UK until 2012. However, the deal could be terminated early with compensation paid to S&N if both sides agree.

In the British beer market, Foster's and Kronebourg brewer S&N controls around a 27 percent market share, while both InBev and Carling brewer Coors both have around 18 to 19 percent and the smallest of Britain's four national brewers Carlsberg UK (CARLb.CO: Quote, Profile, Research) some 12 percent.

Interbrew built up its position in Britain by buying Whitbread brewing and Bass brewing in 2000, but after the acquisitions were blocked by the UK competition authorities the Belgian brewer sold the majority of the Bass business to Coors.

The group is moving to trim its UK breweries to three from five, announcing the closure of its Manchester brewery on Thursday and its Northern Ireland Belfast brewery last month, both by early 2005, leaving three - Samlesbury in northwestern England, Magor in South Wales and Glasgow in Scotland.


10 September, 2004