Asahi
Asahi's Strategic Expansion In Australia's Beverage Market
Since its acquisition of Carlton & United Breweries five years ago, Japan's Asahi Group is still expanding its presence in Australia, focusing on smaller deals and nonalcoholic drinks. Asahi's acquisition of CUB, Australia's largest beer maker, has solidified its dominance in the mid-priced beer market, holding a 59 percent share as of 2023. The company has focused on improving employee morale and long-term growth, integrating CUB into its broader Oceania strategy. With Australia's growing population and stable economic outlook, Asahi sees the country as an ideal market for experimentation. In 2023, Asahi's Oceania operations represented 24 percent of its revenue and 40 percent of core profits. The company is also expanding into premium soft drinks and nonalcoholic beverages, with plans to increase their sales share by 2030 to 20 percent of total revenue. Recent acquisitions, like luxury gin maker Never Never Distilling, align with Asahi’s premium strategy, with more deals potentially on the horizon. However, large acquisitions may face scrutiny from Australian regulators.
Britvic
Carlsberg Acquires Britvic For £3.3 Billion
Carlsberg has agreed to acquire British soft drinks maker Britvic for £3.3 billion, creating a major UK beverage "powerhouse", after a previously rejected offer. It’s expected to deliver significant cost and efficiency savings of £100 million over five years by leveraging shared procurement, production and distribution networks. Carlsberg CEO Jacob Aarup-Andersen emphasized the strategic value, highlighting Carlsberg's experience in integrating beer and soft drink operations. The acquisition also includes Britvic's bottling agreement with PepsiCo, potentially expanding Carlsberg's bottling reach. Carlsberg suspended share buybacks to focus on reducing net debt, with plans to resume them by 2027. Additionally, Carlsberg will acquire full ownership of the Carlsberg Marston's joint venture, buying out Marston's for £206 million. The move was positively received by investors, with shares of both Carlsberg and Britvic rising, despite some later profit-taking.
Carlsberg
Carlsberg's San Miguel Partnership To End In 2024
Carlsberg Marston’s Brewing Company has announced that its long-term exclusive licensing agreement with Mahou San Miguel to produce and distribute the San Miguel brand in the UK will end on December 31, 2024. MSM has decided not to renew the partnership. CMBC, which has successfully grown the San Miguel brand over 15 years, will work with MSM and its new partner to ensure a smooth transition. Despite the disappointment, CMBC remains focused on its diverse portfolio, which includes brands like Carlsberg Danish Pilsner and 1664 Blanc. CMBC also maintains a strong logistics network and recently began a 10-year partnership with the Stonegate Group, the UK's largest pub operator.
Companies
Marston’s Sales Surge Amid Euro 2024 Boost
Marston’s, one of the UK’s largest pub chains with nearly 1,500 locations, reported a 5.2 percent increase in year-to-date like-for-like sales and a 6.2 percent rise in total sales, largely driven by the boost from Euro 2024. During the week of the semi-final and final, sales surged 8 percent compared to the same period last year, despite poor summer weather. This positive momentum follows Marston’s recent decision to sell its 40 percent stake in the Carlsberg Marston’s Brewing Company for over £200 million to Carlsberg. The sale marks the end of Marston’s nearly 200-year brewing legacy and shifts the company’s focus entirely to its pub operations. CEO Justin Platt emphasized the company’s commitment to enhancing the pub experience and sees the move as a vote of confidence in the UK hospitality sector, despite challenges like rising costs. The sale is intended to strengthen Marston’s balance sheet and position the company as a dedicated hospitality business.
The FTSE 250 constituent sold the firm in order to focus “entirely on pubs” and create a “stronger balance sheet”.
The move was seen as as vote of confidence in the UK hospitality sector, which has been plagued by a perfect storm of rising ingredient costs, labour costs and rents.
Platt said of the sale: “The disposal of our 40% stake in CMBC marks a pivotal step for Marston’s, allowing us to become a pure play hospitality business. I look forward to delivering on the opportunities a focused pub business will provide.”
The FTSE 250 constituent sold the firm in order to focus “entirely on pubs” and create a “stronger balance sheet”.
The move was seen as as vote of confidence in the UK hospitality sector, which has been plagued by a perfect storm of rising ingredient costs, labour costs and rents.
Platt said of the sale: “The disposal of our 40% stake in CMBC marks a pivotal step for Marston’s, allowing us to become a pure play hospitality business. I look forward to delivering on the opportunities a focused pub business will provide.”
Suntory Targets Major Growth In Indian Market
Suntory Holdings aims for India to contribute 10-20 percent of its sales in the long-run, and up to 15 percent in a few years. CEO Takeshi Niinami highlighted India’s strong demand for spirits and strategic importance, predicting significant growth for the company’s beverages in the region. Suntory recently established Suntory India Private Limited to explore expansion opportunities, particularly in soft drinks and wellness products. The company seeks a local manufacturing partner to boost its presence in India and facilitate exports to Africa, the Middle East and Asia. While Suntory's immediate focus is on domestic growth, it sees India as a crucial hub for future operations. Last year, Suntory introduced several premium products to the Indian market, including Yamazaki 12 whisky and Jim Beam bourbon variants, signaling its commitment to tapping into India’s appetite for premium beverages.
Suntory
Suntory Uses AI To Boost Biodiversity On Blackcurrant Farms
Suntory Beverage & Food GB&I is leveraging AI technology to enhance biodiversity across its Ribena blackcurrant farms during the 2024 harvest season. In partnership with the Farming and Wildlife Advisory Group South West, the initiative uses bioacoustic monitoring to identify bird species across various habitats. This AI-driven approach supports SBF GB&I’s commitment to sustainable agriculture, illustrating how farm stewardship can protect wildlife while enhancing crop resilience. The findings help growers refine their methods to further boost bird populations, contributing to the company’s long-term environmental goals under its Farm Stewardship Scheme. The initiative demonstrates the potential of modern agriculture to support biodiversity in the face of climate change.
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