Scottish & Newcastle, Carlsberg linked

Reports are that strategic alliance may be in the works

Dec 27, 1999 - Scottish & Newcastle of Scotland and Denmark's Carlsberg reportedly have begun talks about a strategic alliance.


The London Telegraph reported executives from both companies met within the past five weeks to explore a number of issues including joint venture distribution and marketing initiatives in overseas markets. A spokesman for S&N refused to comment specifically on the talks but confirmed the company was looking at overseas opportunities.

Carlsberg has substantial interests in some markets, particularly in China and the Far East, where S&N has no representation. S&N has built several of its products into global brands. Its sales of Newcastle Brown Ale and Beamish Stout have increased steadily in North America.

S&N's interest in Carlsberg has been sparked by Carlsberg's announcement that it intends to change its ownership structure and sell its non-core assets. Carlsberg, the world's seventh largest brewer, said it intends to review its ownership structure as consolidation continues among the world's top beer producers.

Although Belgian-owned Interbrew denies it is considering an IPO, there are indications it is considering ways to raise money for acquisitions. Anheuser-Busch and Heineken -- the two largest brewers in the world -- are also rumored to be looking at potential alliances.

Search The Real Beer Library For More Articles Related To: UNITED KINGDOM, Scottish & Newcastle, Carlsberg