Beer brewing behemoth, Anheuser-Busch InBev SA/NV BUD, alias AB InBev, moves another step closer to fulfilling its requirements for the mega-merger with SABMiller Limited (earlier known as SABMiller Plc).
The company closed the previously agreed sale of some of SABMiller’s eastern European businesses to Japan’s Asahi Group Holdings, Ltd. for €7.3 billion (or US$7.8 billion).
Under the agreement signed on Dec 13, 2016, the company disposed SABMiller’s businesses in five countries namely, Poland, Czech Republic, Slovakia, Hungary and Romania (termed as CEE Business). These included leading beer brands like Pilsner Urquell, Kozel and Tyskie. Further, the divestiture is in sync with AB InBev’s pact with the European Commission in May 2016.
While the disposal of these assets only fulfills AB InBev’s antitrust commitments, the purchase has significant importance for Asahi as it presents a lucrative opportunity to diversify outside its home market, where the brewers’ are plagued by an aging and shrinking population.
Additionally, this acquisition complements Asahi’s previous buy of the Western European brewing assets from AB InBev for €2.55 billion, including SABMiller’s premium beer brands Peroni and Grolsch, and British craft brewer Meantime. Together, the assets acquired from AB InBev provide Asahi the platform to expand in Europe and establish itself as a global player. Further, the recent acquisition will bring the company to the third spot among the Asian brewers.
Coming back to AB InBev, the company signed many other similar deals in various countries to win regulatory nod for the SABMiller buyout. The most prominent one in the lot is definitely the sale of SABMiller’s 58% stake in the MillerCoors LLC joint venture (JV) to Denver-based Molson Coors Brewing Company TAP for $12 billion. This makes Molson Coors, which previously held a 42% stake in MillerCoors, the 100% stakeholder in the JV. Molson Coors now has full rights to all the brands in the MillerCoors portfolio for the U.S. market, including Redd’s and import brands such as Peroni and Pilsner Urquell.
Moreover, the company has agreed to sell SABMiller’s 26.4% stake in Distell Group Limited, a South African distiller of wine, spirits, and ciders to Africa’s largest pension administrator, the Public Investment Corporation (SOC) Limited. Further, the company agreed to divest 54.5% stake in Coca-Cola Beverages Africa (“CCBA”) to the soft-drinks giant The Coca-Cola Company KO for $3.15 billion.
Despite these divestitures, we note that the combined mega-brewing company still holds the top spot in the beer industry, controlling about one-thirds of the global beer market. This behemoth, which accounts for nearly 30% of global beer sales and 46% of global beer profits, leaves Heineken NV HEINY trailing in the second spot, with only 11% share of the global beer market.
AB InBev also retains its leading position in the U.S., with 44% share in the beer market, while Molson Coors has grown incredibly to become the second-largest brewer controlling about 25% market share.
Source: Zacks via Yahoo Finance
Danone has appointed Carla Hilhorst to the newly created position of senior vice president of research and innovation categories and zones, as the company looks to make science the heart of its business. Hilhorst, who brings over 30 years of experience in research and innovation, will report directly to Isabelle Esser, Danone’s chief research, innovation, quality and food safety officer.
The move, part of Pernod Ricard’s strategy to enhance its premiumisation efforts, will allow the company to focus more resources on its portfolio of premium international spirits and champagne brands that drive the growth of its business. This decision aligns with the company’s commitment to delivering sustainable value for shareholders, employees, clients and partners.
Schai – who is the current CEO of Swiss chocolate company Lindt & Sprüngli’s Australian operation – has previously worked with Aryzta from 2015-2018, where he served in roles including managing director for Asia Pacific and global strategic business lead (McDonald’s). The fast-food giant McDonald’s is one of Aryzta’s significant clients.
