Friday, 19 October 2007

Consolidation Storm Brewing

With rising ingredient and shipping costs, a "consolidation storm is brewing" in the beer industry, according to The Wall Street Journal.

A week after two of America's iconic brewers said they will combine forces, two European titans, Heineken NV and Carlsberg AS, said yesterday that they have formed a consortium to bid for the United Kingdom's best-selling brewer, Scottish & Newcastle PLC...

The announcement followed news that London's SABMiller PLC planned to combine its U.S. unit, Miller Brewing Co., with the U.S. division of Molson Coors Brewing Co., creating a joint venture called MillerCoors.

In addition to the already cited rising costs, the moves are a reaction to "to shifts in beer-drinking habits across the globe. In Western Europe and the U.S., beer sales growth is sluggish amid increasing competition from wine and spirits."

Thanks to Howard for the news tip.