Nearly two years since Carlsberg and Heineken joined forces to buy and carve up Scottish & Newcastle, it is hard to see what the Netherlands-based brewer got from the deal.
Apart from a super-premium headache, that is.
While Heineken yesterday (23 February) bemoaned sluggish demand for beer in core western markets, Carlsberg saw its share price skip after predicting that profits will rise by a further 20% in 2010.
Both brewers have been hit by consumers trading down to cheaper beers in their main markets, with beer volume sales down mid single digits in 2009 and net sales propped up at the bar by price increases.
However, Carlsberg has emerged from yesterday as the favoured brewer of the two.
When one looks back to the GBP7.8bn Scottish & Newcastle deal in 2008, it is hard to see how Heineken sought to benefit.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataYes, Carlsberg got France – a tough market – but it also obtained all of the growth markets, taking control of its joint venture with S&N in Eastern Europe, as well as S&N operations in China and Vietnam.
Heineken, meanwhile, obtained S&N’s UK and Ireland assets, as well as Belgium, Portugal and Greece.
Now, you might say it has been Heineken’s misfortune that the economic downturn hit these mature markets particularly badly, Ireland especially so.
Stay informed for just £1! *
Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.
What’s included in your subscription:
- Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
- Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
- Unrivalled drinks industry comment from leading sector specialists
Ready to stay informed? Subscribe now and gain access to exclusive content.
Have a subscription? Sign in
For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.
