European consumer goods correspondent
David's Feed
Jun 25, 2012

AB InBev in talks to buy Mexico’s Modelo

BRUSSELS/LONDON (Reuters) – Anheuser-Busch InBev’s (ABI.BR: Quote, Profile, Research) interest in buying the rest of Grupo Modelo (GMODELOC.MX: Quote, Profile, Research) is sparked by Mexico’s growing beer market, the potential for big cost savings and control of exports of Corona beer, but the Mexican brewer sounded cautious on Monday.

Mexico’s Modelo and Belgian based AB InBev, which has a 50.4 percent non-controlling stake in Modelo, said on Monday they are discussing expanding that relationship.

Jun 25, 2012

Modelo says in talks with Anheuser-Busch InBev

BRUSSELS/LONDON, June 25 (Reuters) – The combination of
Mexico’s growing beer market, big cost savings and control of
Corona beer exports have sparked Anheuser-Busch InBev’s
interest in a buyout of Grupo Modelo, but the
Mexican brewer sounded cautious on Monday.

Family-controlled Modelo confirmed Monday it was in talks
about expanding a relationship with the Belgian brewing giant,
but said in a statement it would be premature to speculate on
any outcome of the talks.

Jun 25, 2012

Corona beer draws AB InBev to Modelo deal

BRUSSELS/LONDON (Reuters) – Mexico’s growing beer market, big cost savings and control of Corona beer exports have attracted Anheuser-Busch InBev (ABI.BR: Quote, Profile, Research, Stock Buzz) towards a $15 billion buy out of Grupo Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz), sources said on Monday.

The deal would give AB InBev, the world’s largest brewer access to 2-3 percent annual growth in the Mexican market, make at least $250 million of synergies and win distribution rights to Corona, the largest U.S. imported beer brand.

Jun 20, 2012

P&G cuts forecast, will focus on big businesses

CHICAGO/LONDON (Reuters) – Procter & Gamble Co took the blame on Wednesday for a lack of big new products and not being quick enough to cut costs as it deals with persistent slowing demand in Western Europe, the United States and China.

The world’s largest household-products maker cut its growth forecasts for a second time in two months on Wednesday, as expected, and said it did not expect to repurchase shares in the coming fiscal year as it tries to maintain its “AA-” credit rating.

Jun 20, 2012

P&G cuts growth targets as China slows

LONDON (Reuters) – Slower growth in China and tough markets in Europe and the United States prompted Procter & Gamble (PG.N: Quote, Profile, Research, Stock Buzz), the world’s largest household product maker, to cut its growth forecasts on Wednesday in the midst of a $10 billion cost-cutting program.

The U.S. maker of Tide laundry detergent, Gillette razors and a host of other products also blamed the strong dollar and higher commodity costs for hitting growth after admitting it had struggled to grow operating profit over the past three years.

Jun 17, 2012

Rising African tide floats global brewers’ boats

LONDON/JOHANNESBURG, June 17 (Reuters) – An African has to
work three hours on average to afford a beer, compared with 12
minutes for a European, and yet the continent is the global hot
spot for beer growth, such that the world’s big brewers are
struggling to keep pace.

Mark Bowman, Africa boss for global brewer SABMiller
, is building new breweries in Nigeria, Uganda and Zambia
this year and expanding those in a string of other nations.

Jun 12, 2012

InterContinental sees boost from Olympic summer

LONDON (Reuters) – The world’s biggest hotelier, InterContinental Hotels (IHG.L: Quote, Profile, Research, Stock Buzz), expects its London rooms to be about 90 percent full for the Olympic Games as the world’s sports fans flock to Britain for the two-week extravaganza.

Chris Hale, the group’s head of London 2012, said its key revenue measure could also be boosted, and countered criticism that rooms during the Games are too expensive by pointing to “lots” of availability at less than 100 pounds a night.

Jun 10, 2012

Diageo leads Pernod in race into emerging markets

LONDON, June 10 (Reuters) – British drinks giant Diageo
is leading the race into emerging markets ahead of
French rival Pernod Ricard and looks set to be first
to get half its sales from these growth areas as it serves
drinkers from Moscow to Mumbai.

While Diageo has been snapping up producers of baijiu,
cachaca and raki in China, Brazil and Turkey to drive sales in
the world’s fastest growing economies, Pernod is hamstrung by
massive debts taken on four years ago to buy Absolut vodka.

Jun 6, 2012

Diageo splashes out to tap whisky boom

LONDON (Reuters) – Drinks group Diageo Plc (DGE.L: Quote, Profile, Research, Stock Buzz) is to invest over 1 billion pounds ($1.5 billion) in Scotch whisky production over the next five years, creating hundreds of jobs, to meet growing demand from the emerging markets of Asia, Latin America and Africa.

The maker of Johnnie Walker, J&B and Bells whisky said it plans to build a new malt distillery, expand a number of its other distilleries and develop plans for a second new distillery if global demand is sustained at expected levels.

May 31, 2012

Analysis: SABMiller faces long haul to turn around Foster’s

LONDON (Reuters) – World No.2 brewer SABMiller (SAB.L: Quote, Profile, Research, Stock Buzz) is set for a tough battle to turnaround its Australian Foster’s acquisition as its beer volumes sink and it loses key import contracts which will stretch management to meet new aggressive targets.

Investors are unconvinced that SABMiller, which has built up its business around fast-growing emerging markets to become the biggest brewer there, made the right move in buying the No.1 player in mature market Australia when its beer volumes, profit and market share were all going south. SABMiller’s shares have underperformed its main rival Anheuser Busch InBev (ABI.BR: Quote, Profile, Research, Stock Buzz).

    • About David

      "I write on and co-ordinate coverage of European consumer goods companies from London. These include food groups such as Nestle, Unilever and Danone, drinks companies like Diageo, Heineken and SABMiller, and cigarette groups British American Tobacco and Imperial Tobacco. I have previously worked in Milan covering Italian financial news and before that specialised on the car industry and the engineering sector, and also have some experience of commodity coverage."
    • Follow David