Trends

Heineken USA launched of BeerTender for the U.S. market. The devide is designed exclusively for the Heineken and Heineken Premium Light DraughtKegs. The countertop cooler uses a patented carbonator pressure technology to “deliver a perfect pour every time.”

Engineered by Krups, the BeerTender works this way: Insert a Heineken or Heineken Premium Light DraughtKeg into BeerTender, connect the included disposable draft tube, close the lid, and serve.

“BeerTender is an innovation in draft technology and a must-have for any beer aficionado who values a premium-quality draft beer experience and stylish product design,” Ken Kunze, senior vice president, chief marketing officer Heineken USA, said for a press release.

Not surprisingly, he is referring to drinking Heineken products.

Selected models allow the consumer to adjust temperatures to 36°F, 39°F or 42°F to accommodate a personal drinking preferences. And there is a 30-day freshness count-down indicator available on some models.

The BeerTender, designed to sell for between $279 and $299 depending upon the model, is already available in the Netherlands, France, Austria and Switzerland. More information is available at www.BeerTender.com.

Germany’s beer consumption has dropped to the lowest level since the government began collecting statistics in 1993.

Beer consumption in Europe’s largest economy fell 3.7 percent (in 2007) to 88.5 million hectoliters, the lowest since the Federal Statistics office, based in Wiesbaden, started collecting figures excluding non-alcoholic beer in 1993, a report showed today.

“Beer consumption is dependent on the weather and also tends to peak when we have special events,” Marc-Oliver Huhnholz, a spokesman for the Brauer-Bund brewery association in Berlin, said in an interview. “Our industry hopes for a long, hot summer and that the German soccer team will do really well in the European soccer championship this year.”

Beer sales have also been declining in the past decade as more and more Germans switch to lighter or non-alcoholic beverages, the group said. German brewers sold 2.9 percent less beer last year, the biggest drop since 1998, the report said.

One story suggest that microbreweries and brewpubs could help reverse the trend.

Berlin’s Oliver Lemke, who owns four small breweries, said the overall slump reflects the destruction of small local breweries by big corporations.

“There used to be 100 breweries in this neighborhood alone,” Lemke said. “They died out in the 1970s with the trend toward mono-breweries. The big breweries – for example Warsteiner or Licher – said: ‘We’re only going to make one sort of beer, a premium pilsner, and we’ll market it nationwide.’ And that inevitably leads to a dead-end. At some point, even the world’s biggest idiot notices that there’s virtually no difference between a Warsteiner and Licher.”

The story has a familiar ring to it: “It’s difficult for independents to break through against the conglomerates. The big brewing companies control distribution networks and encourage pub owners to feature their products exclusively by offering loans, price rebates and free tapping and refrigeration systems, beer glasses and even ashtrays.”

After more than three months of negotiations, Scottish & Newcastle agreed a takeover offer from European rivals Carlsberg and Heineken.

S&N, Britain’s largest brewing company, produces Newcastle Brown and many other brands, including Foster’s and Kronenbourg 1664 beer.

Carlsberg of Denmark and Heineken will divide Scottish & Newcastle’s assets between them and share the bill, with Carlsberg taking a slightly larger part. Heineken will obtain the British business, and Carlsberg will take full control of Russia’s largest brewer, which it owned with Scottish & Newcastle.

Analyst point out that Carlsberg’s interest in the Russian market – where it and S&N shared a partnership – was a driving force behind making the deal.

The takeover will give Heineken access to Britain’s cider market, which is growing 18.6%. It will also get Scottish & Newcastle’s businesses in Ireland, Portugal, Finland, Belgium, the United States and India.

After three months of battles, Scottish & Newcastle has agreed to enter discussions that would result in Carlsberg and Heineken taking over the UK brewing giant.

The Times Online reports:

S&N agreed to open its books after the pair increased their bid for the third time to 800p a share, ending a three-month takeover stand-off.

The group’s chairman, Sir Brian Stewart, had fiercely held out against the Dutch and Danish suitors, but sources said the two sides entered talks this week.

Heineken and Carlsberg first approached S&N in October. S&N owns the Newcastle Brown, Kronenbourg and Strongbow brands, but the center of interest is Baltic Beverages Holding, the fast-growing Russian and Baltic brewer that S&N jointly controls with Carlsberg on a 50-50 basis.

Anheuser-Busch will continue raising prices to counter a rise in the cost of ingredients, Chief Financial Officer W. Randolph Baker told a group of stock analysts at a conference in New York.

Baker hit several optimistic notes in his presentation, including an apparent increase in consumer interest for domestic beers. He said beer industry growth in 2007 has continued to exceed expectations, up 1.8% to date.

“We see the resurgence in interest in beer. With the momentum there, it’s likely you’re going to have strong demand for beer,” Baker said.

The St. Louis Post-Dispatch has in depth analysis of A-B’s standing the market and plans for the future. Some highlights:

– The top priority is boosting Bud Light, the company’s best-selling brew. The beer has “under­performed” this year.

– Bud Light and Budweiser will get an extra $70 million in television ad support next year.

– A new Michelob campaign will account for another $30 million.

– Fewer brands will be advertised on television.

– The average A-B distributor now handles 147 brands, more than double from five years ago.

– Analysts said the nearly-flat sales volumes for A-B’s main brands — even as the overall industry is growing at a strong clip — is a cause for worry. Bud Light, for one, is losing market share to Coors Light and its “cold” marketing message, said analyst Mark Swartzberg of Stifel, Nicolaus & Co.

The British Beer and Pub Association reports beer sales in pubs have slumped to their lowest level since the 1930s.

The facts:

– Total beer sales – in pubs, off licences and supermarkets – have fallen from 12 billion pints a year in 1979 to 9.5 billion in 2007, according to BBPA figures.

– Pubs have been particularly affected. Some 29 million pints were sold each day in pubs 28 years ago, compared with 15 million pints a day this year.

– Tax on beer has increased by 27% since 1997 – compared to 16% for wine, 3% for spirits and 11% for cider.

– The BBPA also said the smoking ban had had an effect, with a 7% drop in pub beer sales this year alone.

The BBPA has called for a freeze on beer taxes, and the Campaign for Real Ale (CAMRA) offers its support.

A spokesman said: “It is no coincidence that Britain has the highest level of excise duty in the EU and sales in the on-trade are falling, and yet binge-drinking is on the increase as supermarkets cynically exploit the consumer by offering cut-price booze to drink at home. A pub is the proper place to enjoy a drink in a responsible and regulated atmosphere.”

The Wall Street Journal uses the news that Carlsberg and Heineken have formed a consortium to bid for the United Kingdom’s best-selling brewer, Scottish & Newcastle, as an opportunity to explain “Why Consolidation Storm Is Brewing in Beer Industry.”

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. In Western Europe and the U.S., beer sales growth is sluggish amid increasing competition from wine and spirits.

Of course the story mentions concerns about the rising cost of ingredients, emphasizing that price and market share are at least as important to the large companies as the beers they brew.

The WSJ points out the S&N takeover is far from a done deal and other companies could enter bids.

Another possible suitor for S&N is Anheuser-Busch, the world’s third-largest brewer by volume. The St. Louis-based beer maker is heavily dependent on the U.S. market and may be attracted to the opportunity to gain a big stake in Russia or the U.K. W. Randolph Baker, Anheuser’s chief financial officer, declined to comment.

Jean-Francois van Boxmeer of Heineken makes the difference between being a giant brewing company and a small-batch brewer quite evident when he says that it 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. 1 or No. 2 player.

Scottish & Newcastle stock surged Wednesday after two of its European competitors said they’re considering a takeover bid. Carlsberg and Heineken said they were in talks regarding the formation of a consortium to launch a bid for the UK’s largest brewer.

The companies said that it was “currently intended that Carlsberg will ultimately acquire Scottish & Newcastle’s interest in Baltic
Beverage Holdings, France and Greece, and that Heineken will ultimately assume control of Scottish & Newcastle’s business in the UK and other European markets.”

Edinburgh-based Scottish & Newcastle’s top brands include Foster’s, Kronenbourg 1664 and Newcastle Brown Ale, while Heineken’s main brands are Heineken and Amstel and Carlsberg is known for its Carlsberg beer.

If closed the deal would further the ongoing consolidation among the world’s largest brewers. Last week Moslon Coors and SABMiller announced plans to combine their U.S. operations.