Blog: S&N - reaping the rewards of its balancing act
Olly Wehring | 20 February 2007
UK brewer Scottish & Newcastle thinks it has got the balance of its business just about right.
S&N, which today (20 February) posted a 7% rise in full-year revenue and a 10.1% hike in operating profit, gave a breakdown of its figures showing just how important both sides of that balance are to each other.
On the one hand, there is UK and Western Europe - the dullest beer markets in the world, in one sense. The two markets delivered slow profit growth of 1.5% and 1.1% respectively for S&N in 2006. Total operating profit from the two came in at GBP384m (US$750.5m) for the period.
Over at Baltic Beverages Holding, S&N’s joint venture with Carlsberg, operating profit was a bit more colourful - up a massive 42.9% to GBP160m for the year.
By the group’s own admission, the year was a game of two halves – “The dullards of the UK and International (Western Europe) are providing all the cash,” said John Dunsmore, managing director of S&N UK.
Dunsmore was quick to wave the figures under critics who believe the brewer is over-exposed to mature markets. He said: “It’s these mature businesses which are feeding our other operations with cash, allowing us to grow into new, developing markets.”
With the announcement, also today, that S&N has followed its operations in China and India with a new joint venture in Vietnam, could the company become more of a global force to be reckoned with in the future?
To support the release of its latest report, entitled ‘The Economic Impact of Scotch Whisky Production in the UK’, trade body The Scotch Whisky Association has released this video, highlighting the si...
The Coca-Cola Co is in the middle of a major restructuring plan, affecting jobs around the world. The company is also downsizing its packaging....
One, perhaps minor, consequence of the conflict in Ukraine appears to be a fall in sales of Russian vodka in the country....
Diageo has jumped onboard Google's latest interactive maps and is opening up the virtual doors to four of its distilleries. ...
- Comment - Diageo Steps Up Defence of Haig Club
- just the Preview - Diageo Q2 & H1
- just the Facts - Top 20 US Beers by Value, Volume
- Focus - Diageo's H1 Results by Region, Brand
- Remy, dead cats and the power of China's new year
- Belvedere vodka tie-up over new James Bond film
- Diageo speaks out over supplier contract changes
- Brown-Forman appoints Jack Daniel's president
- Diageo inks UK distribution deals
- ASA rejects Haig Club ad complaints
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages
- Edrington Group in Spirits (World)