HOLLAND: Grolsch earnings inch up in 2006
Dutch brewer Grolsch saw sales and earnings inch up last year, the company reported today (20 February).
Grolsch said that operating profit for last year came in at EUR25.6m (US$m) compared to EUR25.3m in 2005. Turnover was also up, but again only marginally, to EUR317.6m from EUR312m.
Grolsch pointed to slight volume declines in its home market as well as in the UK. The brewer, which had a stand-off with a Dutch supermarket chain last year, saw its domestic market share slip, despite rising on-trade sales.
The brewer also blamed strong price erosion in the UK supermarket channel, with the premium beer segment feeling the pinch from fierce price competition.
The transfer of US distribution rights to Grolsch to Anheuser-Busch failed to lift volumes across the Atlantic but the company said that it is now "in an excellent position for 2007".
In other international markets, margins improved markedly, Grolsch said, with sales volumes growing by 14%, mainly driven by France, Australia, New Zealand and Russia. Total beer sales in volume terms came in at 3.2m hectolitres, down from 3.3m in 2005.
Grolsch also warned that the brewing industry will face steep increases in purchase prices for malt and hops, while higher energy prices will also lead to higher costs.
With a new returnable bottle now available in its home market, and the US distribution change almost complete, Grolsch said that it expects to grow faster than its core markets in 2007. The brewer refrained, however, from giving a results forecast for the year.
Anheuser-Busch has quashed rumours that it has plans to build a second brewery in India....
China's leading beer producer Tsingtao Brewery is planning to increase its production capacity by 1m tons by the end of 2007, according to local reports....
Royal Grolsch has signed a partnership agreement with Premium Beverages, enabling its flagship namesake beer to strengthen its position in Australia....
The drinks industry has come under attack in the US for supposedly using energy drinks to mask the effect of alcohol....
Compania Cervecerias Unidas has posted an impressive leap in operating and net profit in the year so far....
US drinks distributor Silver Eagle Distributors L.P. has acquired all assets of BudCo, the Anheuser-Busch and Grupo Modelo sales, marketing and distribution company for 13 counties in South Texas....
Anheuser-Busch has posted a steady rise in profits and sales for its second quarter....
A local broker has lowered its coverage of Mexican brewer Grupo Modelo....
- Craft spirits shake-out will be just the beginning
- How Treasury is rewriting the rule book - Comment
- The decline of the flagship beer brand - Comment
- Drinkable yogurt - The next drinks opportunity
- Coca-Cola India suspends bottling operations
- Diageo brands need "fixing and nurturing" - TWE
- Diageo revamps Gordon's gin bottle in UK
- SAB shareholders granted AB InBev vote split
- Craft Brew Alliance poised for AB InBev takeover?
- Diageo's Guinness Rye Pale Ale - NPD
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages