Blog: Pils, thrills and headaches
Chris Brook-Carter | 20 January 2004
All brewing eyes will be firmly fixed on Germany after today’s announcement that Carlsberg has made a takeover offer for one of the country’s leading brewers, Holsten.
It could prove to be one of the most contentious acquisitions in the brewing industry for many years.
Carlsberg was known to be on the look out for takeover targets. But the acquisition has still come as a shock, given that Holsten announced in December it had abandoned its strategic search for a buyer.
The acquisition will no doubt divide opinion among Carlsberg’s investors. Despite a reasonable price tag for a leading brewer in Europe’s largest beer market, the Danish brewer is buying into a market in decline.
To make matters worse, Germany remains extremely fragmented, even after the recent round of consolidation that has preceded this deal. There are roughly 1,660 breweries in the European Union. Nearly 1,300 of those are in Germany, and more than half of those have an annual production capacity of only 5,000 hectoliters.
To make the situation even more complicated, the structure of the deal has already come in for criticism, with one report arguing that Carlsberg’s plan to sell off around half of Holsten’s assets makes this a half-hearted effort.
In Dow Jones’s “The Sceptic” column, the author writes: “If Carlsberg ever wanted to compete head to head with rival Interbrew in Europe's biggest beer market, it probably just blew its chance.”
The purchase of Holsten could have given the Danish brewery the opportunity to take second place in Germany. But by selling two of the company’s top brands Koenig and Licher, Carlsberg has settled for 5th place.
It appears instead that Carlsberg intends to use Holsten’s distribution to grow its flagship brands Carlsberg and Tuborg organically. How the German market – notorious for its domestic loyalties - will take to these foreign brews remains to be seen.
It would appear that the folk at the UK arm of Carlsberg have this year found the 'gimmicky' drawer in the marketing office....
It's a popular grizzle and one I'll admit to having on at least one or two occasions… a day. Why do people post photos of their food and/or drink on to my social media feed?...
After a 2014 it'll want to forget, Treasury Wine Estates has some good news....
The garden shed is usually home to some spiders, a lawnmower and a few half-empty paint tins. ...
- Diageo Q4 & FY - Preview
- Is Diageo approaching its "Et tu, Brute" Moment?
- Has Diageo added Beer to its 'Non-Core' List?
- Diageo " knew United Spirits would be complicated”
- Focus - Diageo's FY Performance by Region
- NPD: Tomatin Contrast, Cù Bòcan
- Diageo, Heineken end South Africa, Namibia JV
- Challenges remain as Diageo posts flat FY sales
- Bacardi creates Bacardi rum marketing role
- Diageo comm's director latest to leave
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research