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beer industry

Page history last edited by Brian D Butler 9 years, 9 months ago






Table of Contents:



Industry Majors:


1.  SAB-Miller (south african breweries):  was #1.... before....

2.  InBev:  based in Belgium, but run by Brazilians....2nd biggest by volume (US operations are tiny)....purchased  Anheuser-Bush (maker of Budweiser)....3rd biggest by volume....controls almost 50% US beer market (the worlds most profitable).



Other big companies:

4.  Heineken

5.  Carlsberg


"US beer companies"

Sam Adams:  most famous...



Startup tips:

How much does it cost to start a (MICRO) Brewery?  see discussion here:  http://www.probrewer.com/vbulletin/showthread.php?t=3421



Industry trends:


1.  consolidation:  InBev offered $46 billion for Anheuser, and ended up purchasing them for over $55 b...why?  better terms when negotiating over the price of hops, barley, glass, aluminum...all of which have been rising in prices recently (see article below).   Estimated savings:  $1.4 billion per year (aggressive).  The merger was an all-cash deal, for $70 a share, will create the world's largest brewer, uniting the maker of Budweiser and Michelob with the producer of Stella Artois, Bass and Brahma. Together, the two companies would have sales of more than $36 billion a year, surpassing the current No. 1 brewer, SABMiller of London.  Anheuser's concession caps a wave of consolidation within the beer industry. InBev and SABMiller, themselves the products of mergers this decade, have led efforts to gain distribution channels around the world. The rising cost of beer ingredients like grain has also driven companies to seek greater scale and purchasing power. InBev has its own long history, with its predecessor having been founded in 1366. But the modern company sprang from the 2004 union of Interbrew of Belgium and AmBev of Brazil. Though the combined company remains based in Leuven, its chief executive is Carlos Brito, who led AmBev before the merger.


How the deal was financed:  InBev is taking on about $45 billion in debt to finance the deal. In a sign of confidence that the deal would go through, the company began syndicating those loans to other banks on Friday.


US Brands owned by foreigners:  Several American beer giants have already been taken over by larger overseas rivals in the last decade. The Miller Brewing Company was sold to South African Breweries in 1999, and the Adolph Coors Company was bought by Molson of Canada in 2005. (Last year, Molson Coors agreed to merge its United States operations with those of SABMiller.)


But, despite the recent wave of mergers.... BEER is stil a LOCAL BUSINESS



Beer industry in Brazil


1 - Ambev tha joined a belgian company and now they are called imbev - they hold skol, antartica, brahma, bohemia...( they are buying anheiser bush)

2 - Schincariol (devassa, etc)

3 - The coca cola company - (Kaiser, sol, Bavaria) 


By far, the largest share of the Brazilian beer market (a whopping 80+%) belongs to Brazilian beer giant Ambev (Companhia de Bebidas das Américas). Ambev produces the popular Brahma, Antárctica, Skol and Bohemia brands (marcas) as well as other less prominent beer brands and numerous soft drinks. It is by far the largest brewer in Brazil and was formed in 1999 by the merger of Brazilian beer titans Brahma and Antárctica. Before the merger was approved, the Ambev group had to convince the Brazilian government's anti-trust agency CADE (Conselho Administrativo de Defesa Econômica) that only a merger could help Brazilian brewers to compete successfully in the global market. But the merger mania didn't end there.

In 2004, Ambev, in turn, merged with Belgium based Interbrew (brewers of Stella Artois, Becks, Bass, LaBatt and Leffe and about 200 other brands) to form the world's single largest brewer by volume, with 14% of the worldwide beer market and revenues


The third most popular beer in the world is the Brazilian brand Brahma. In fact, Brahma together with Antárctica and Skol are among the ten top selling beers in the entire world.




About Devassa:

Devassa, which started out in 2002 as a local brewpub, is now a regional brewery and has 8 bars located in the most prestigious areas of Rio de Janeiro and São Paulo in Brazil reaching more than 65,000 upscale consumers per month. Devassa is now the most popular premium beer in Rio de Janeiro. Devassa, growing rapidly due to the popularity of the brand in the Domestic Brazilian market, has in just three short years gone from selling 6,000 liters per month to 90,000 liters per month.


Sell to a major:


The brewery Devassa, created in Rio De Janeiro in year 2000, finishes to be bought by the Schincariol for 30 million reais (Oct '07).  At the time of the sale, Devassa had grown and was invoicing annually about 12 million reais, with 13 bars in Rio De Janeiro and São Paulo, is one of the marks more known of artisan beer and chope in Brazil - a market that represents only 2% of the total volume of beer sold in the country, but that it comes growing quickly.  With the purchase,  Devassa will utilize the 12 factories of Schincariol spread across the country to produce the "chope" and beer under the Devassa brand.


now, ready for export:


"This brand has all the features to really explode in the US. Devassa has already caught on in the UK and Europe because the package is great, the marketing support is superb and the taste is out of this world," states Ted O'Connor, President of Aladdin. O'Connor goes onto say, "We strongly believe Devassa has the ability to be one of the next great imports in the US."



Using the Yangtze River for east-west traffic and and the rail lines for north-south traffic, Anheuser Busch can distribute product to most major cities in China. A little known fact in the U.S., is that Anheuser Busch now has 50% of the premium beer market in China. They have accomplished this using a single location to distribute product to their distributors.


Beers of China


Yanjing - Great Beer REAL TASTE OF CHINA


Yanjing beer is a malty, smooth lager beer from China. It is the most commonly available beer throughout Beijing, is the official state beer of China, and is one of the major sponsors of the 2008 Beijing Olympics. The beer was first brewed in 1980, and continues to be made today. It is also exported to countries around the globe, including the United States, Australia and the United Kingdom.


The beer is manufactured by the Beijing Yanjing Beer Co., Ltd. Today, the Yanjing Beer Co. covers an area of 2,220,000 m². The company has approximately 20,000 employees, and is the largest beer manufacturer in China. They produced 3.11 million tons of beer in 2005 alone.


In Beijing, Yanjing is widely available in restaurants, but is not generally available in bars and nightclubs. Because of Yanjing's low price, bar owners claim that they cannot make enough of a profit selling it; thus, they stock the popular beer brands Tsingtao and Zhujiang, or foreign brands of beer instead


Great Chinese beer, better than Tsingtao, much more flavour, i had it in Kro Bar Piccadilly, also had it in Yang Sing Chinese restaurant. Goes down great with or without food, i love it! The real taste of China! One of the most tasteful Asian beers ive tried reccently, real nice fresh Chinese beer middle range 4.5%, goes down well with or without food, new beer on the market looks really rare, taste's great - must be tried! Yanjing is number 2 for production and is mainly found in and around Beijing and the middle of the country. Tsingtao the leader in the country (due to it's export history) is number 1 and Zhujiang Beer is number 3. I prefer Zhujiang beer and Kingway beer.



Tsingtao - The ONLY beer in China, really


Tsingtao Brewery is China's largest brewery. Founded in 1903 by German settlers, it claims about 12% of domestic market share. Tsingtao Beer was introduced to the United States in 1972, and soon became the top-selling Chinese beer in the U.S. market; it has maintained this leadership within the United States ever since, despite increasing competition from other well known Chinese beer brands, Zhujiang and Yanjing. The Tsingtao brand is sold in more than 50 countries worldwide and accounts for more than 50% of China’s beer exports. Tsingtao is the number-one branded consumer product exported from China. Tsingtao is 27% owned by Anheuser-Busch


comments: It resembles a beer in appearance, if not in taste. With a virile 2.8% alcohol content, this is one beer which will have you saying Tsingtao is nice pilsner beer, but I prefer Zhujiang now





Zhujiang Beer


Zhujiang beer is a lager beer from China, and is one of 3 Chinese national beer brands (along with Tsingtao and Yanjing). With an abv. of 5.3%, the beer is characterised by a pale straw appearance, with a subtle malt flavour highlighted by a delicate hop balance. Zhujiang is the 2nd most consumed Beer in China; 48,000 bottles are consumed per hour. It is particularly successful in the South of China. The beer is also exported to countries around the globe, including Canada, France, Australia, USA, Sweden and the UK.





The second largest selling brand in the world is Asahi (Japan)




Rising Costs

see end of cheap food for a discussion about how ethanol subsidies in the USA are resulting in food shortages (and price increases) in corn and other agricultural products around the world.  One example of a by product of rising agricultural prices (as a result of US ethanol policy) is the increasing prices in the beer industry.



Links from KookyPlan


Page Content Matches: 35




News from the web:


A shortage of hops threatens Christmas


JUST as the festive season gets going, drinkers in America are finding their favourite beer suddenly more expensive or even—horrors!—not available at all. Hit by price increases and shortages, many breweries, particularly the small “craft brewers” and the even smaller microbreweries, are being forced to raise prices, make do with modified recipes or shut off the spigots altogether.


The humble hop, the plant that gives beer its distinctive flavour, is the main problem. Many farmers in the Pacific north-west, where America's hop production is concentrated, have turned to more profitable lines—especially corn, which can be made into ethanol. The decrease in hop production, put at some 50% over the past decade, has sent prices through the roof. Brian Owens, the brewmaster of the O'Fallon Brewery near St Louis, Missouri, says that the variety he once bought for $3 a pound (0.45kg) now costs five times that. Many smaller breweries cannot find what they need at any price. Industry giants like Anheuser-Busch and Miller are better off, thanks to long-term contracts. But even Anheuser-Busch has been forced to raise prices for its six-packs.



Without their supply of hops, some smaller producers are going out of business, bringing to a halt the fastest-growing segment of the industry. Other craft brewers and brewpubs are experimenting with new recipes, hoping their customers will adapt.


The hops shortage is only part of the problem. Things are no better for barley, used to make the malt that yeast turns into alcohol. It too has been ploughed under in favour of corn. Crop failures in Australia and Europe, combined with the weak dollar, have made it harder to replace the shortage with imports. Other price increases, of fuel, glass and metal, add to the pressure. Not such a merry Christmas.


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