Ambev
Ambev's Q4 Results: Struggles Amidst Regional Challenges
Ambev, the Brazilian subsidiary of Anheuser-Busch InBev, reported Q4 net profit down 10.9%, falling short of market expectations. Revenue dropped approximately 12% compared to the same period last year. Annual sales in Brazil showed growth, driven by popular brands like Corona and Spaten, but volumes dipped quarter-on-quarter, and in South America volume fell 3.8%. Total volume overall saw a marginal decline of 0.1%. The company cited currency and commodity trends, along with lower interest rates, as factors mitigating cost pressures in Brazil. Notably, Ambev saw slight growth in EBITDA of 0.6% and anticipates a potential drop of up to 3.0% in costs per hectoliter of beer, excluding non-Ambev products, for the current year.
Asahi
Asahi Plans European Expansion With Focus on Premium Beer
Asahi is ramping up its presence in Europe with a fresh investment plan aimed at elevating premium beer sales. The company announced a significant HUF100 billion (US$280 million) investment in its Hungarian unit Dreher Breweries, part of its broader strategy to enhance its premium portfolio across the region. Phillip Russell, Asahi Europe & International's communication and public affairs manager, emphasized the long-term strategic approach, highlighting the investment's role in securing Dreher Breweries' future competitiveness. The investment, spread over a ten-year plan, includes modernizing equipment, expanding storage facilities, and introducing new technologies to enhance efficiency and sustainability.
Brands
Rockstar Energy Unveils Rebrand to Drive Market Expansion
Britvic unveiled a new look for Rockstar Energy, aiming to boost visibility of its zero-sugar offerings in the energy drinks market. The revamped packaging features a sleek and modern design with simplified branding and eye-catching graphics, designed to attract health-conscious consumers. Available in 500ml cans with an MRSP of £1.35, the updated design will extend across all Rockstar Energy products and sub-brands, accompanied by a marketing campaign spanning various channels including social media, digital advertising, and influencer partnerships. A QR code on packs will offer shoppers the chance to win tickets to live events across the UK.
Britvic
Britvic Commits to Solar Energy to Reduce Carbon Emissions
Britvic entered a ten-year agreement to source 75% of its electricity from a solar farm in Northamptonshire. The move is expected to reduce over 1,000 tonnes of carbon dioxide emissions annually, aligning with Britvic's goal of achieving net-zero carbon emissions by 2050. The solar farm, covering 160 acres will provide clean energy to Britvic's factories in Rugby, London, and Leeds. The company says this initiative underscores Britvic's commitment to environmental responsibility and meeting consumer demand for sustainable products.
Carlsberg
Carlsberg's Strategic Blueprint: SAIL '27
Carlsberg' announced an updated strategy, SAIL '27, to chart a course for accelerated growth, underscored by a heightened focus on premium products and expanded presence in Asia. Despite external challenges like the war in Ukraine, the Danish brewer aims to bolster its long-term prospects by ramping up investments and refining its strategic framework. With organic revenue growth targets raised to 4-6% CAGR, Carlsberg aims to outpace its previous performance, with CEO Jacob Aarup-Andersen emphasizing a transition into growth mode. Key pillars of the strategy include prioritizing premium brands (such as Tuborg and Grimbergen), expanding into non-beer categories (notably cider and hard seltzer), and strengthening geographical footholds, particularly in Asia.
Carlsberg Gives Cautious Outlook But Sees Reasons To Believe
Carlsberg gave a cautious outlook for 2024. It pointed to Germany's beer market that saw sales fall to their lowest levels in over a decade with declines in both domestic consumption and exports, signalling a challenging operating environment for breweries. Still, stakeholders remain optimistic about long-term prospects, emphasizing the need for innovative strategies to revitalize the market. And in the US market, Cognac brands continue to struggle with sales falling in recent years. Despite efforts of major players such as Courvoisier and Rémy Cointreau, the spirit's performance remains lackluster. Despite these headwinds, the Danish brewer lifted its long-term targets for sales and earnings.
Companies
Britvic Launches Pepsi MAX Competition to Energize Convenience Retailers
Britvic ran Pepsi MAX competition aimed at convenience retailers to coincide with the brand's rebranding. Dubbed "Thirsty for More," the competition offered a £250 cash prize along with exclusive Pepsi merchandise to five winners. Retailers needed to submit a brief description outlining why they require assistance with their soft drinks range. Britvic's says the initiative underscores its commitment to supporting retailers and boosting cola sales through strategic partnerships.
Labor Dispute at Suntory Brings Potential Disruption to Lucozade Supply
A labor strike at Suntory's Coleford plant, prompted by disputes over pay, poses a risk to production. With over 180 workers participating, the strike could disrupt supply chains and lead to shortages of Lucozade and Ribena. The strike would be the first at the plant since the 1970s and Suntory faces pressure to resolve the dispute swiftly to minimize disruptions and maintain business continuity.
Lotte
Plastic Pollution Report: Lotte Chilsung, JDC, Coca-Cola in the Spotlight
Greenpeace Korea's recent report highlights Lotte Chilsung, Jeju Special Self-Governing Province Development Corp. (JDC), and Coca-Cola as the top generators of single-use plastic waste in South Korea's food and beverage industry. The findings are based on a survey involving over 2,000 participants who tracked their plastic waste for a week, revealing that over 78% of the waste came from food packaging. Lotte Chilsung led the list with 3,864 pieces of waste, followed by JDC and Coca-Cola.
Suntory
Beam Suntory Reports 7% Sales Growth Driven by Premium Brands
Beam Suntory, owner of Maker's Mark and Jim Beam, achieved a 7% increase in net sales in 2023, fueled. The company faced a challenging environment in North America and key markets like India and China but was strong in premium segments such as Japanese whiskies and Bourbons which saw double-digit growth. Operating income also saw a substantial 13% rise, reflecting the company's success in managing costs.
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