![]() ![]() The Heineken brand is the second-largest imported beer in the U.S. last year, according to Beer Marketer's Insights, an industry publication. ![]() It would import Newcastle Brown Ale, which had 1.7% of the highly fragmented market for imported beers in the U.S. Heineken also would increase its share of the U.S. Combined, Heineken would be nearly twice as big in Europe by market share, in terms of volume, as the next-biggest player, Carlsberg. Heineken, the world's fourth-largest brewer by volume, would take over S&N's U.K. Carlsberg also would acquire S&N's operations in France and Greece. The venture, Baltic Beverages Holding AB, has the leading market share there, led by Baltika, Russia's best-selling beer. Under the planned deal, Carlsberg, the world's fifth-largest beer maker by volume, or quantity of beer sold, would acquire full control of a joint venture it owns equally with S&N in Russia, where beer drinking is growing as the populace turns away from hard liquor. could help boost the paltry 3% market share of Heineken's namesake brew, which as a premium brand sells for higher margins.Ĭarlsberg, of Denmark, and Heineken said they may make an offer, likely in cash, for Scottish & Newcastle, which makes Newcastle Brown Ale, its best-known brand in the U.S, as well as John Smith's and Kronenbourg 1664. S&N's marketing and distribution clout in the U.K. "Consolidation in terms of operational benefits, synergies, is essentially a local thing," Mr. And, he said, the best deals are ones that beef up a brewer's share of an existing market, not ones where it expands into a virgin one. The company's chief executive, said in an interview last month that the beer industry today takes so much capital that it isn't worth the expense being in many of the world's markets unless your company is either the No. It's also a key objective of Netherlands-based Heineken in the United Kingdom. That's part of what Miller and Coors plan to do in the U.S., as they seek to forge a stronger competitor to long-dominant In the world's mature beer markets, brewers seeking to consolidate hope to use their increased market share to negotiate better deals for everything from commodities to advertising that could bolster profits. Another factor prompting consolidation is the rising cost of key commodities like grain, glass and aluminum, which is squeezing profit margins. In many emerging economies, however, including Eastern Europe and China, sales are booming. In Western Europe and the U.S., beer sales growth is sluggish amid increasing competition from wine and spirits. The maneuvers, coming about 2½ years after the most recent wave of beer-industry consolidation, are a reaction to shifts in beer-drinking habits across the globe. ![]()
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