The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Beer market of Kazakhstan acquired both traits of East European countries and South Eastern Asia taking a transitional position between them by many criteria and consumption style. Yet there is a positive trend in beer production which differs Kazakhstan from most of the neighboring countries. The market has remained consolidated in the hands of two international players because of its small size. However, it faces dynamic processes such as fast growth of draft beer sales, up and downs of regional companies and Carlsberg Group’s ultimate expansion. Excessive mainstream segment has declined over the recent years, yet, Zhigulevskoe and national brands with regional links have yielded their positions to a range of new products. In our review special attention was paid to regional analysis of the markets. In 14 regions of Kazakhstan we compared the companies’ positions, the market price segmentation and DIOT channel development. Besides we have compared the beer market of Kazakhstan to neighboring countries. ...
SABMiller Takes $10 Billion Foster’s Offer Hostile After Board Rejection
The cash offer is worth A$4.90 a share, less any dividend paid out by Foster’s, SABMiller said today. The board of Melbourne-based Foster’s has shown “no willingness to engage,” SABMiller said, after it announced an initial offer on June 21. Foster’s had said the bid “significantly undervalues” Australia’s largest brewer, whose shares closed at A$4.96 today.
“Anybody who expected SAB to pay a bid premium on top of a price that had a bid premium in it was foolish,” said Trevor Stirling, an analyst at Sanford C. Bernstein in London. SABMiller’s initial offer to the Foster’s board was 8.2 percent higher than the target’s closing price the previous day.
An acquisition of Foster’s would be SABMiller’s biggest and give the maker of Castle lager about half of Australia’s beer market, including Victoria Bitter. Chief Executive Officer Graham Mackay has made more than two dozen acquisitions since he moved SABMiller’s listing to London in 1999, though he’s passed on some of the industry’s biggest deals since 2008. He shunned buying the beer unit of Fomento Economico Mexicano SAB last year after rival Heineken NV (HEIA) paid a price SABMiller deemed too high.
SABMiller shares reversed initial declines and rose 20 pence, or 0.9 percent, to 2,138 pence at 12:05 p.m. in London.
SABMiller, which started selling beer to gold prospectors in South Africa in 1895, has expanded through acquisitions including Colombian brewer Bavaria and the Grolsch brand. The company became the second-biggest brewer, behind Budweiser maker Anheuser-Busch InBev NV (ABI), after the $5.6 billion takeover of Miller Brewing Co. by South African Breweries Plc in 2002.
Since the June 21 bid for Foster’s, which SABMiller said values the target at 12.5 times its estimated 2011 earnings before interest, taxes, depreciation and amortization, the Australian brewer said it will get A$390 million in cash refunds and interest after winning a dispute with the Australian Commissioner of Taxation. That reduces the multiple to about 11.8 times estimated 2011 Ebitda, according to analysts at Investec Securities in London. The average multiple for key transactions in the beer industry in the past five years was 13 times earnings, Nomura Holdings Inc. has estimated.
No Rival Bidders
Andrew Butcher, a spokesman for Foster’s external media adviser Butcher & Co., declined to comment on today’s bid. Nigel Fairbrass, a London-based spokesman for SABMiller, declined to comment beyond the company’s statement.
Foster’s shares rose about 13 percent on the day of SABMiller’s first approach and fell as low as A$4.66 on Aug. 8 amid global market tumult and the absence of any rival bidder.
“Highly volatile equity market conditions have weakened Foster’s bargaining position, as has the absence, to date, of rival bidders,” analysts including Andy Smith at MF Global in London wrote today in a note.
Representatives of competitors Asahi Group Holdings Ltd., Suntory Holdings Ltd. and Anheuser-Busch InBev declined to comment today on the offer or their intentions.
SABMiller’s move “should have been expected,” said Will Seddon, who helps oversee more than $300 million, including Foster’s shares, at White Funds Management in Sydney. “They went suspiciously quiet, which was a ploy to get the share price to soften before going hostile.”
The offer is contingent on getting at least 90 percent of the outstanding shares of Foster’s. SABMiller will fund the deal from existing resources and new debt. The U.K. company will provide a bidder’s statement to Australian regulators and Foster’s, and expects to mail that information to Foster’s shareholders about two weeks after it files to the company.
In May, Foster’s spun off wine unit Treasury Wine Estates Ltd. to focus on the beer business, where it’s trying to stem five years of market-share losses. After adjusting for the spinoff, Foster’s has gained 20 percent since May 2010, when it announced the plans to split its wine and beer businesses, increasing speculation of a takeover approach for both.
Foster’s Chief Executive Officer John Pollaers, who ran the beer unit for 13 months before the wine spinoff, has introduced new brands to appeal to younger consumers and win back customers who switched to sweeter drinks such as pre-mixed spirits. The executive plans to boost Foster’s share of faster-growing craft and premium labels with brews such as Fat Yak and Big Helga and reduce its reliance on stalling brands like Victoria Bitter.
Foster’s is due to report earnings on Aug. 23, with the company expected to post net income of A$697 million for the 12 months ended June, according to the average of four analyst estimates compiled by Bloomberg. The company had a year-earlier loss of A$464.4 million after writing down the value of its wine assets. Excluding items, profit was A$711.3 million in 2010.
“I don’t think anyone’s expecting fantastic numbers out of Foster’s and there hasn’t been an alternative bidder,” said Sean Fenton, who helps manage $1.1 billion at Tribeca Investment Partners in Sydney. He doesn’t hold Foster’s shares. “Without another bidder coming in and being aggressive, it’s hard to see SABMiller needing to make a huge bump. The bid might look quite attractive if we get some average numbers from Foster’s.”
Both brewers could cut costs and increase earnings if a transaction is completed, Moody’s Investors Service said in June. Moody’s rates Foster’s Baa2, two levels above junk status, and SABMiller one notch higher at Baa1.
SABMiller’s Mackay said at the time of the June bid that his plan to seek financing for the Foster’s purchase would still allow the company to maintain an investment-grade credit rating.
SABMiller is being advised by JPMorgan Chase & Co, Moelis & Co., Royal Bank of Scotland Group Plc and Morgan Stanley.
18 Авг. 2011