AUSTRALIA: SABMiller finds Foster's a drag - analyst
Foster's Group will soon be up against Coca-Cola Amatil in its home market
In a note released today (23 August), Nomura changed its advice from 'Neutral' to 'Reduce', blaming expected weaker margins by the end of the year. The analysts also said yesterday's announcement by Coca-Cola Amatil to enter the beer market will put further pressure on the underperforming Foster's unit.
SABMiller bought the brewer last year but has revealed that lager volumes in Q1 fell 13% at Carlton United Breweries, the Australian drinks arms of Foster's.
Nomura said its cautious view was confirmed by Heineken's first-half results yesterday, which reported higher input costs and foreign exchange fluctuations.
“In addition, price/mix appears to have been weak in Central and Eastern Europe, exacerbated by growth in discount channels,” the note said.
The long-term outlook for SABMiller remains attractive, Nomura said, adding that Anheuser-Busch Inbev's recent acquisition of Grupo Modelo makes a further bid for SABMiller by the rival brewer unlikely.
Environmental sustainability remains one of the most active areas for the global drinks industry. This year, just-drinks returns to the subject with four separate management briefings, one per sector....
In the second part of this management briefing, which looks at environmental sustainability in the brewing sector, Ben Cooper looks at the role played by sourcing ingredients locally....
The fourth and final part of this month's management briefing, which looks at the efforts of the brewing world in the environmental sustainability arena, considers the work of Heineken, Molson Coors a...
- Is Diageo on the Brink of a Brain Drain?
- SABMiller edges Diageo as beer trumps spirits
- Comment - Heineken's move for Pivovarna Lasko
- Will Keurig Kold come to Coca-Cola Co's Rescue?
- Focus - SABMiller's FY Sales Performance by Region
- Rémy Cointreau eyes recovery after Q4 bounceback
- Carlsberg exec joins Diageo as Africa chief steps
- Diageo targets Millennials with DeLeon ads
- Bacardi cuts jobs at Global Brands unit
- Belvedere unveils executive team