E-Malt.com News article: 1494

The UK brewer Scottish & Newcastle announced that the group had strengthened its positions in its core markets and continues to make significant progress in developing its beer business, most notably through the HP Bulmer and Central de Cervejas transactions which were announced after the year end. “Operationally, the results announced for the year to April 2003 demonstrate a robust performance in difficult markets,” the company’s Chairman, Sir Brian Stewart said at the Annual General Meeting on August 28.

Since May, beer markets in most of Western Europe have been aided by hot and dry weather which has boosted seasonal demand. In contrast, the weather in Northern and Eastern Europe was wet and cold in the early part of the summer. “Overall, trading performance for the year has been positive, with improving trends in our three major businesses, the UK, France, and Russia. We are confident of meeting our financial and commercial objectives for the year,” Sir Brian Stewart said.

In the off trade, UK Beer’s key brands, John Smith’s, Foster’s, and Kronenbourg performed well. In France, volumes have been very strong, led by the Kronenbourg 1664 and Kronenbourg brands, which have both gained market share, stimulated by our continuing commitment to brand investment. In Belgium, Alken-Maes has shown good growth in both volume and value. In Portugal, strong off trade growth, led by the Sagres brand, has compensated for a weak on trade sector which has been affected by low domestic economic confidence and a relatively weak tourist market.

In contrast to these markets Finland has suffered a poor summer in comparison to last year, depressing both the beer and soft drinks markets. In this context, Hartwall has performed well, with volumes in line with the market, whilst its strong brand portfolio has enabled the company to grow overall value.

The results for January to June 2003 for BBH were issued on 15th August. The results demonstrate a strong improvement in volume trends, both for the market and for BBH. In the second quarter Russian beer market volumes grew by 8% and BBH increased its share of the market, growing beer volumes by 10%. Net sales growth, positively affected by growing volumes, has been held back in 2003 due to the impact of a 25% increase in excise duty and adverse mix changes arising from the growth of the PET bottles.

Scottish & Newcastle is an international brewing company with market leading positions in 13 European countries. S&N has three brands in the top ten of Europe in Baltika, Kronenbourg and Foster’s. S&N has an interest in 50 breweries worldwide and has sales of 50m hectolitres per annum.



29 August, 2003