Religions > Atheism > American Giant Embraces Dutch Brew [Grolsch]-Miller's will screw this brand up like they did Lowenbrau
| Topic: |
Religions > Atheism |
| User: |
"stoney" |
| Date: |
20 Nov 2007 08:10:48 PM |
| Object: |
American Giant Embraces Dutch Brew [Grolsch]-Miller's will screw this brand up like they did Lowenbrau |
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Beer is brewed all over the world, but discerning drinkers will settle
for nothing less than suds originating from somewhere between
Amsterdam and Prague, the region where the art was perfected. That, at
least, is the rationale behind beer giant SABMiller's $1.2 billion
offer, announced Nov. 19, for Dutch brewer Grolsch. "Grolsch fills an
important gap in our portfolio, which lacks northern European brands,"
SABMiller Marketing Director Nick Fell told analysts during a
conference call.
London-based SABMiller, whose brands include Miller Lite in the US and
Czech-brewed Pilsner Urquell, is betting even beer drinkers in South
Africa and Brazil will be willing to pay more for Grolsch, which is
brewed in Enschede, Netherlands, and still sold in bottles with a
ceramic stopper.
More Consolidation Brewing
Selling Dutch beer in emerging markets may seem counterintuitive, but
in fact SABMiller is following a template used by all the big
international brewing groups in the last decade. In an industry that
remains surprisingly fragmented, with thousands of local and niche
brands, the big beer groups such as Belgium's InBev and
Amsterdam-based Heineken have learned to embrace diversity. They've
acquired brands with cachet or a loyal following, then applied their
marketing and distribution clout to serve the brews to a wider
audience.
Heineken, though best known for its namesake product, owns more than
120 other brands, including Amstel Light in the US, Turbo King in the
Democratic Republic of Congo, and Presidente in the Dominican
Republic. InBev is best known for Stella Artois and Beck's, but it
also owns some 200 local brands. In fact, thanks to a relentless wave
of acquisition, more than half of global beer volume today emanates
from the top seven brewing groups. "In the last 15 years we have seen
dramatic consolidation," says Gerard Rijk, analyst at Amsterdam-based
ING Group.
The consolidation is not over yet. Heineken and Denmark's Carlsberg
are jointly bidding for British brewer Scottish & Newcastle, which
they value at $20 billion. Management at S&N, which makes Australian
megabrand Foster's and Newcastle Brown Ale, says the offer price is
too low. There also has been speculation that SABMiller could bid for
S&N, which has no controlling shareholder and is therefore a ripe
target. However, an SAB bid now is considered less likely, given the
Grolsch deal.
Leveraging Premium Brands
Brands with enough prestige to command a higher price than everyday
suds are particularly valuable to international brewers. Premium beers
are a small but growing and highly profitable segment in the emerging
markets where SABMiller, with its roots in South Africa, is
particularly strong. "We see significant potential across Africa and
Latin America, where the premium market is still in its infancy,"
SABMiller's chief financial officer, Malcolm Wyman, told analysts.
Although Grolsch has wide global name recognition, 75 percent of its
sales are still in the Netherlands, meaning there is lots of upside
internationally. Drinkers rate its taste to be more accessible than
SAB's somewhat bitter Pilsner Urquell, yet Grolsch still shares with
Heineken a certain Dutch flavor not found, for instance, in American
beers. SABMiller will try to market Grolsch in places like Colombia
where upwardly mobile beer drinkers want a beverage that conveys
status but doesn't challenge their taste buds too much. "The big
opportunity is to take this into other markets SAB is already big in,"
says Lehman Brothers analyst Ian Shackleton.
Such a strategy is not foolproof. SAB marketers will have to take care
they don't damage the authenticity of the beer as they take it mass
market. Grolsch traces its history to 1615, a heritage that accounts
for much of its reputation. SABMiller executives dodged questions from
analysts about whether they will brew Grolsch outside the Netherlands,
a move that would probably cut costs and produce fresher beer, but
possibly offend purists.
For SAB the risk is relatively low. Although the takeover offer is 84
percent higher than Grolsch's average share price the preceding month,
SAB can easily finance the deal from cash flow. Analysts for Standard
& Poor's said in a note that the price is high but will not change
SABMiller's debt rating. By the standards of international brewers,
"This is quite a small deal," says Shackleton.
Jack Ewing is BusinessWeek's European regional editor.
.
|
|
| User: "LC" |
|
| Title: Re: American Giant Embraces Dutch Brew [Grolsch]-Miller's will screw this brand up like they did Lowenbrau |
20 Nov 2007 08:50:06 PM |
|
|
"stoney" <stoney@the.net> wrote in message
news:ud47k3h0glfketk9kl9vr131063su0tesc@4ax.com...
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
I'm not sure it's entirely accurate to call SABMiller an "American giant",
insomuch as it's very much an international conglomerate with brands
spanning the globe:
http://www.sabmiller.com/sabmiller.com/en_gb/Our+brands/Brand+information/
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Unfortunately, this is a trend that shows no sign of abating.
The beer business as a whole is a relatively mature industry (read: slow
growth), so it comes down to distribution and filling niches.
I cringed when SAB bought one of the archetype brewers,
Plzensky Prazdroj of Pilsen, Czech Republic, producers of Pilsner Urquell.
While distribution and availability have improved, I find the beer has lost
some of its distinctiveness and character.
Otoh, I've never been all that impressed with Grolsch lager; pretty much
just a higher class of macro-swill, not too different from Heineken.
And yes, I've had it fresh in Holland, so its not just the light-porous
green bottles diminishing its flavor.
In any event, just another good reason to support your local craft brewer.
LC~ Doing his part!
"You can't be a real country unless you have a beer and an airline. It
helps if you have some kind of a football team, or some nuclear weapons,
but at the very least you need a beer." ~ Frank Zappa
.
|
|
|
|
| User: "johac" |
|
| Title: Re: American Giant Embraces Dutch Brew [Grolsch]-Miller's will screw this brand up like they did Lowenbrau |
20 Nov 2007 11:52:36 PM |
|
|
In article <ud47k3h0glfketk9kl9vr131063su0tesc@4ax.com>,
stoney <stoney@the.net> wrote:
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Beer is brewed all over the world, but discerning drinkers will settle
for nothing less than suds originating from somewhere between
Amsterdam and Prague, the region where the art was perfected. That, at
least, is the rationale behind beer giant SABMiller's $1.2 billion
offer, announced Nov. 19, for Dutch brewer Grolsch. "Grolsch fills an
important gap in our portfolio, which lacks northern European brands,"
SABMiller Marketing Director Nick Fell told analysts during a
conference call.
London-based SABMiller, whose brands include Miller Lite in the US and
Czech-brewed Pilsner Urquell, is betting even beer drinkers in South
Africa and Brazil will be willing to pay more for Grolsch, which is
brewed in Enschede, Netherlands, and still sold in bottles with a
ceramic stopper.
More Consolidation Brewing
Globalization screws up everything. Even beer.
--
John #1782
.
|
|
|
| User: "Lord Calvert" |
|
| Title: Re: American Giant Embraces Dutch Brew [Grolsch]-Miller's will screwthis brand up like they did Lowenbrau |
21 Nov 2007 12:03:19 AM |
|
|
On Nov 21, 12:52 am, johac <jhachm...@remove.sbcglobal.net> wrote:
In article <ud47k3h0glfketk9kl9vr131063su0t...@4ax.com>,
stoney <sto...@the.net> wrote:
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Beer is brewed all over the world, but discerning drinkers will settle
for nothing less than suds originating from somewhere between
Amsterdam and Prague, the region where the art was perfected. That, at
least, is the rationale behind beer giant SABMiller's $1.2 billion
offer, announced Nov. 19, for Dutch brewer Grolsch. "Grolsch fills an
important gap in our portfolio, which lacks northern European brands,"
SABMiller Marketing Director Nick Fell told analysts during a
conference call.
London-based SABMiller, whose brands include Miller Lite in the US and
Czech-brewed Pilsner Urquell, is betting even beer drinkers in South
Africa and Brazil will be willing to pay more for Grolsch, which is
brewed in Enschede, Netherlands, and still sold in bottles with a
ceramic stopper.
More Consolidation Brewing
Globalization screws up everything. Even beer.
Thank Bacchus for the True Holy Trinity(tm): The Matt Brewing Company in
Utica (Saranac), the Ithaca Beer Company in Ithaca (and their
magnificent Apricot Wheat) and the Middle Ages Brewing Comany in
Syracuse (Wailing Wench et. al.). Truly, Central New York State is the
place to be if you love good-quality small-brewery beer. Now if only
the western part of the state could match their quality (Flying Bison
unfortunately does not meet any of the CNY breweries' standard).
Rich Goranson
Amherst, NY, USA
aa#MCMXCIX, a-vet#1
EAC Department of Conspicuous Alcoholic Consumption
.
|
|
|
| User: "johac" |
|
| Title: Re: American Giant Embraces Dutch Brew [Grolsch]-Miller's will screw this brand up like they did Lowenbrau |
21 Nov 2007 01:47:42 AM |
|
|
In article
<9eb0dd90-9548-4b5e-9ae6-bc0366dc96f5@f13g2000hsa.googlegroups.com>,
Lord Calvert <CalvertdeGrey@msn.com> wrote:
On Nov 21, 12:52 am, johac <jhachm...@remove.sbcglobal.net> wrote:
In article <ud47k3h0glfketk9kl9vr131063su0t...@4ax.com>,
stoney <sto...@the.net> wrote:
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Beer is brewed all over the world, but discerning drinkers will settle
for nothing less than suds originating from somewhere between
Amsterdam and Prague, the region where the art was perfected. That, at
least, is the rationale behind beer giant SABMiller's $1.2 billion
offer, announced Nov. 19, for Dutch brewer Grolsch. "Grolsch fills an
important gap in our portfolio, which lacks northern European brands,"
SABMiller Marketing Director Nick Fell told analysts during a
conference call.
London-based SABMiller, whose brands include Miller Lite in the US and
Czech-brewed Pilsner Urquell, is betting even beer drinkers in South
Africa and Brazil will be willing to pay more for Grolsch, which is
brewed in Enschede, Netherlands, and still sold in bottles with a
ceramic stopper.
More Consolidation Brewing
Globalization screws up everything. Even beer.
Thank Bacchus for the True Holy Trinity(tm): The Matt Brewing Company in
Utica (Saranac), the Ithaca Beer Company in Ithaca (and their
magnificent Apricot Wheat) and the Middle Ages Brewing Comany in
Syracuse (Wailing Wench et. al.). Truly, Central New York State is the
place to be if you love good-quality small-brewery beer. Now if only
the western part of the state could match their quality (Flying Bison
unfortunately does not meet any of the CNY breweries' standard).
That's all that will be left. The microbreweries. Too bad I don't see
any of the one's you mentioned on the West Coast, but we have some
passable ones out here too.
--
John #1782
.
|
|
|
|
|
|
| User: "" |
|
| Title: Re: American Giant Embraces Dutch Brew [Grolsch]-Miller's will screwthis brand up like they did Lowenbrau |
20 Nov 2007 08:16:06 PM |
|
|
On Nov 20, 9:10 pm, stoney <sto...@the.net> wrote:
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Beer is brewed all over the world, but discerning drinkers will settle
for nothing less than suds originating from somewhere between
Amsterdam and Prague, the region where the art was perfected. That, at
least, is the rationale behind beer giant SABMiller's $1.2 billion
offer, announced Nov. 19, for Dutch brewer Grolsch. "Grolsch fills an
important gap in our portfolio, which lacks northern European brands,"
SABMiller Marketing Director Nick Fell told analysts during a
conference call.
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The next time someone asks you "what's the greatest threat to world
peace?", you should answer "American Businessmen!".
Guess I better go get some before the sale goes through...<snif>
-Panama Floyd, Atlanta.
aa#2015/KoBAAWA!
.
|
|
|
| User: "stoney" |
|
| Title: Re: American Giant Embraces Dutch Brew [Grolsch]-Miller's will screw this brand up like they did Lowenbrau |
01 Dec 2007 08:51:53 PM |
|
|
On Tue, 20 Nov 2007 18:16:06 -0800 (PST),
wrote:
On Nov 20, 9:10 pm, stoney <sto...@the.net> wrote:
http://www.spiegel.de/international/business/0,1518,518401,00.html
November 20, 2007
MILLER TIME FOR GROLSCH
American Giant Embraces Dutch Brew
By Jack Ewing
Miller has offered $1.2 billion for the Dutch brewer. Can the
mass-market beermaker reap the benefits of the well-known brew without
damaging its reputation?
Beer is brewed all over the world, but discerning drinkers will settle
for nothing less than suds originating from somewhere between
Amsterdam and Prague, the region where the art was perfected. That, at
least, is the rationale behind beer giant SABMiller's $1.2 billion
offer, announced Nov. 19, for Dutch brewer Grolsch. "Grolsch fills an
important gap in our portfolio, which lacks northern European brands,"
SABMiller Marketing Director Nick Fell told analysts during a
conference call.
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The next time someone asks you "what's the greatest threat to world
peace?", you should answer "American Businessmen!".
I thought that, too, but the article indicates Miller's based out of
South Africa.
Guess I better go get some before the sale goes through...<snif>
-Panama Floyd, Atlanta.
aa#2015/KoBAAWA!
.
|
|
|
|
|
|
Related Articles |
|
|
