Ambev
Ambev Records Lower Than Expected Net Profit But Sees Some Improvement Ahead
Ambev in Brazil posted 15.2 percent lower net profit in the second quarter, just below market expectations, on cost pressures that it expects will start to ease. Revenue was up a fifth on the year-ago quarter although sales volumes were down 2.2 percent. It has lowered its COGS per hectoliter outlook for the full year from 6.0-9.9% growth to 2.5-5.5% on improved expectations for inflation and commodity prices.
Brands
Lucozade Announces Formulation And Packaging Changes
Lucozade has reformulated its Energy Original and Orange products and they also have new packaging. Original has a bolder flavor; Orange has a deeper citrus flavor. Consumers can also see more of the liquid in the bottle with new sleeves aimed at making them easier to see on the shelves. It’s part of the SBF GB&I’s Core Brand Innovation program aimed at growing Suntory’s brands in Japan and Europe and involves putting consumers at the core of innovation. Zoe Trimble, head of Lucozade Energy, said: “The goal is to better understand the lives of our consumers, what they’re looking for and what drives their decision making, so we can adapt our brands to meet their needs…” The changes will be seen for Energy Orange and Energy Original 380ml, 500ml and 900ml bottles. Packaging changes will roll out to the other Energy flavors over several months.
Britvic
£22.5 Million Investment To Add A Sixth Bottling Line At Britvic’s Beckton Site
Britvic is spending £22.5 million on its sixth bottling line at the Beckton, East London, plant, expanding capacity there by almost 30 percent and adding 18 jobs. It will produce brands like Tango and Pepsi MAX. The announcement follows Britvic’s £8 million investment to improve the site’s energy efficiency and cut carbon emissions.
Britvic Posts 10 Percent Revenue Growth in The April-June Quarter, Boosted By Iced Coffee Acquisition
Britvic saw an almost 10 percent revenue jump in the quarter ending June 2023, on volume growth and positive price/mix impact. International revenues were up 13.3 percent. Revenues in Britain were up 10.1 percent, largely attributed to the acquisition of Jimmy’s Iced Coffee, but down almost 2 percent in Brazil.
Carlsberg
Carlsberg Fears Its Russian Subsidiary Could Be Nationalized
Baltika Breweries, Carlsberg’s subsidiary in Russia, might be nationalized following the seizure by authorities of its operations in the country. Cees ’t Hart, Carlsberg’s CEO, said the two possible extreme outcomes are to “be pushed back to the previous process [of approval of a sale], or to nationalization. We don’t know which direction it will go.” Based in St. Petersburg, Baltika has eight breweries and over 8,000 employees. Although Carlsberg had found a buyer earlier this year, the Kremlin quickly took control of operations under Putin-ally and former Baltika president, Taimuraz Bolloev. Carlsberg still holds the title of Baltika’s shares but has no control of operations.
Carlsberg Offers Higher Profit Expectations
Danish brewer Carlsberg has raised full year profit guidance after its “solid” first half performance. It now expects organic operating profit growth of 4-7 percent, up from the previous estimate of a 2 percent fall to 5 percent increase. Organic sales were up 11 percent in the first six months of the year, and organic operating profit grew 5.2 percent. The improved news helped allay concerns after some turbulence in recent months, including a €50 million fine to settle an 11-year battle over historic price-fixing allegations. Carlsberg also decided to reduce its beer’s alcohol content ahead of duty reforms in the UK.
Companies
Asahi Creates New Global Procurement Unit To Secure $100 Million In Annual savings
Japan’s Asahi brand is consolidating its procurement operations to reduce costs by at least US$100 million a year. Procurement is largely handled by the individual regional or country operation but with the new Asahi Global Procurement organization in Singapore, Ashai hopes it can reinforce relationships with its key strategic suppliers around the world. Asahi has four regional headquarters – in Japan, South East Asia, Oceania and Europe – and the new unit will oversee third party spend for all of them. When fully operational, it will manage directly over half of Asahi Group’s total third party spend globally, mostly in conjunction with other integrated regional and local procurement teams.
Japan’s Asahi Beer Brand Eyes China Expansion In Key Cities And Regions
Japan beer brand Asahi, which sells mainly in Japanese restaurants within China, aims to expand its channel reach there, to grocery stores, hotels and online, first in major cities and then with a wider rollout. China’s beer market is expected to see rapid growth, according to Euromonitor International, in contrast to much slower growth in Asahi’s domestic market. Its expansion plans are initially focused on Hong Kong and the Greater Bay Area markets. Regional local beers currently hold around 90 percent of the China market, but Euromonitor sees a growing trend towards craft, foreign and premium brands, which aligns well with Asahi’s positioning.
Varun Beverages Posts Strong Q2 Profit Growth, Remains Optimistic For Full-Year Outlook
Varun Beverages reported 26.2 percent higher profits in the second quarter on product mix improvement, lower input costs and higher volume growth. Net profit was 9.94 billion rupees, up 7.87 billion rupees in the second quarter of last year. Consolidated revenue from operations was up 13.60 percent to 57 billion rupees. Reuters said EBITDA grew almost 21 percent. Chairman Ravi Jaipuria said the company was optimistic about the full-year outlook.
Lotte
Lotte Chilsung Beverage Net Profit Down Over A Fifth In Q2
Lotte Chilsung Beverage Co. posted net profit of 33 billion won in the second quarter, a 20.4 percent decline on the year-ago period. Operating profit was 59.2 billion won, down from 63.8 billion won, but sales were up 4.5 percent.
Suntory
Beam Suntory Reports 10% sales Growth In The First Half Of 2023
Beam Suntory posted double-digit net sales growth in the first half of the year, driven by a strong performance in Asia Pacific. Sales were up 10 percent globally and 16 percent in Asia Pacific. International sales were up 10 percent, helping to balance a more ‘challenging’ and flat North American market. Albert Baladi, president and CEO, attributed the performance to the group’s premiumization strategy and competitive advantage in the ready-to-drink category. The company is optimistic about the second-half outlook, with signs of improvement in the US market.
Beam Suntory And Frucor Suntory Partner To Form Suntory Oceania
Suntory Oceania is a new AU$3 billion partnership between Beam Suntory and Frucor Suntory premium spirits and non-alcohol products in Australia and New Zealand. It will be the fourth-largest ANZ beverage group in Oceania and will control the whole portfolio, from manufacturing to distribution. Operations should start mid-2025 in Australia and during the following year in in New Zealand. It will start with the construction of an AU$400 million net zero facility in Queensland with capacity to produce 20 million cases, rising to over 50 million over time.
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