Chinese brewer Tsingtao Brewing Co has announced that a 27% stake in the company, currently held by Anheuser-Busch, will be transferred to InBev upon completion of its proposed takeover of the Budweiser brewer. Assuming that the InBev/Anheuser-Busch deal is finalized before the end of the year, the stake in Tsingtao would grant the combined company control of one fifth of the Chinese beer market, ostensibly the largest brewing market in the world.

Elsewhere in brewing news, UK-based brewer Carlsberg has announced price hikes of 2.3% across its portfolio. The move follows similar increases by InBev and Coors as the prices of raw materials such as malt and hops continue to soar amid the worsening credit crunch. Carlsberg has also cited increasing utility bills as a major factor behind the hikes, following the recent announcement that UK electricity and gas prices are to be increased by 33.3% and 19.2%, respectively. A spokesperson for the company added that while Carlsberg has been striving for efficiencies in order to avoid passing costs on to customers, price increases are inevitable.

Edited by

Chris Eatough

IN THIS ISSUE

REPORT OFFER OF THE WEEK

Beer for women case study: marketing beer as a drink which can also be enjoyed by females

A growing number of brewers are turning to female consumers in
order to boost flagging beer sales in the UK

Order now to develop a thorough understanding of the factors influencing the market and how to best position beer for women

LATEST COMMENT

Innocent Drinks: moving into vegetables could be far from smooth

Innocent Drinks has extended its brand to include vegetable-based products for the first time, with the launch of four varieties of prepared meals that will initially be available in Waitrose stores. The move continues the company's health focus, but it is debatable whether Veg Pots will have the same appeal as its popular fruit smoothies. Read full article

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RESEARCH IN FOCUS

Understanding Alcoholic Drinking Occasions: The On-Trade

Despite economic uncertainty, consumers' "less but better" attitudes and a desire for indulgence offer marketers opportunities to tap into the on-trade market

Identify the key indicators and the 'who, when and why' of on-trade alcohol consumption

BREWING NEWS

InBev to take over Anheuser-Busch's 27% stake in Tsingtao Brewery
Belgian brewer InBev has signed an agreement with Anheuser-Busch, Tsingtao Brewery and Tsingtao Brewery Group. In line with this, the company will take over Anheuser-Busch's 27% stake in Tsingtao Brewery. Read full article
Company information: InBev

Carlsberg hikes wholesale prices
Danish brewer Carlsberg has said that it is increasing its wholesale prices by an average of 2.3% due to a rise in the costs of raw ingredients. The price hike will come into effect from October 6, 2008. Read full article
Company information: Carlsberg

Heineken USA acquires importation rights for Newcastle Brown Ale
Beer importer Heineken USA has assumed the rights to import, market and sell Newcastle Brown Ale in the US. Read full article

SABMiller launches Dreher Premium Lager in South Africa
SABMiller, a beverage company, has launched a new premium brand, Dreher Premium Lager, in the South African market. Read full article
Company information: SABMiller

Brick Brewing settles lawsuit with The Beer Store
Brick Brewing Company has settled its lawsuit against Brewers Retail, carrying on business as The Beer Store. Read full article

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WINE & SPIRITS NEWS

Diageo to launch new Scotch whisky
UK-based drinks company Diageo will launch a new Scotch whisky called Johnnie Walker Blue Label King George V Edition in September 2008. Read full article
Company information: Diageo plc

Sterling Vineyards announces launch of organically grown wines
Sterling Vineyards has announced the launch of a new line of organic wines from Mendocino County. Sterling Vineyards Made With Organic Grapes 2007 Sauvignon Blanc and Chardonnay will appear on retail shelves across the US in September 2008. Read full article

Yarraman Winery to acquire Asia Distribution Solutions
Australia-based Yarraman Winery has reached an agreement on the broad terms of a recommended offer to be made to acquire Asia Distribution Solutions Limited in a transaction valued at approximately $27 million. Read full article

UB Drinks launches new Dannoff Vodka
UK-based UB Drinks has launched the new Dannoff Vodka, according to Talking Retail. This launch will be reportedly supported by a GBP3.5 million marketing campaign which will include retailer support, regional and national radio advertising and public relations. Read full article

Brunton Vineyards receives order from Caribbean Traders
Brunton Vineyards Holdings has received an order from Caribbean Traders, a division of Nella's Food World, for the distribution and delivery of 108,000 cases during the next year of the company's wine brands. Read full article

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NON-ALCOHOLIC DRINKS NEWS

Starbucks to open new stores in Indonesia, says executive
Starbucks Coffee Indonesia will open nine new stores in the country, revealed The Jakarta Post, citing the company's marketing and communications head Farah Milda. Read full article
Company information: Starbucks Corporation

Nestle launches ingestible beauty supplement product
Food and beverage company Nestle has introduced Glowelle, a daily beauty drink dietary supplement reported to protect and hydrate the inner and outer layers of the skin.
Read full article

Apple Rush's subsidiary adds Pepsi products to its distribution lineup
Apple Rush has announced that its Garden Distributing subsidiary is selling Pepsi products in its marketing area. Read full article

Hall of Fame Beverages launches Atomic Dogg energy shot
Hall of Fame Beverages has entered the distribution phase for its newest product: Atomic Dogg energy shot. Read full article

Fuze Beverage expands healthy tea line with Black & Green Tea
US-based Fuze Beverage plans to roll out its Acai Berry flavored Black & Green Tea beverage nationally, in September 2008. Read full article

Eldorado Artesian Springs retains Organic Food Brokers to open new markets
Eldorado Artesian Springs, a bottler, marketer and distributor of natural spring water beverages, has retained Organic Food Brokers to expand its distribution throughout the Rocky Mountain Region and to the West Coast. Read full article

NutriPure Beverages acquire Jayger International
NutriPure Beverages has signed a letter of intent to acquire controlling interest of Jayger International, according to which Jayger will become a subsidiary of NutriPure and management of both companies will remain intact. Read full article

HealthWise Gourmet Coffees launches new line of low acid coffees
HealthWise Gourmet Coffees has begun distribution of its new line of specialty low acid coffees across the US. Read full article

Green Mountain Coffee launches Revv coffee at ExxonMobil locations
Green Mountain Coffee, the coffee segment of Green Mountain Coffee Roasters, has launched Revv, a new extra bold coffee, which is claimed to deliver 27% more coffee. The new coffee blend is now available at all On The Run and Tiger Market convenience stores, encompassing approximately 1,100 locations across the US. Read full article

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REPORT BESTSELLERS

MARKET TRENDS

Liqueurs and other alcoholic drinks: top flavors in new global product launches
According to the Productscan database, aside from blend, vodka and lemon were the most used flavors in new liqueurs and other alcoholic drinks products launched worldwide between June 2007 and May 2008. Meanwhile, orange dropped to fifth place, and peach, which appeared in fifth place last year, is no longer listed as one of the 10 most used flavors. However, vanilla is a new flavor for the top 10, appearing in sixth place. Read full article

New drinks launches by category, March to May 2008: raising a glass to wine
According to the Productscan database, fruit & fruit flavored drinks, followed by tea and wine & wine coolers, were the leading categories in new beverage products launched worldwide in the three months to May 2008. Compared with the same period of the previous year, the wine & wine coolers category has shown a notable increase, up 87.6%. Other categories to see growth were beer, coffee and energy drinks. Read full article

Product claims: new drinks launches, March to May 2008
According to the Productscan database, upscale, followed by high vitamins and natural, were the leading claims made on new drinks products launched worldwide in the three months to May 2008. While the upscale claim appeared more frequently than in the same period of the previous year, there was a decrease in the number of launches tagged as being pure and natural.
Read full article

Liqueurs and other alcoholic drinks: top flavors in new global product launches
According to the Productscan database, aside from blend, vodka and lemon were the most used flavors in new liqueurs and other alcoholic drinks products launched worldwide between June 2007 and May 2008. Meanwhile, orange dropped to fifth place, and peach, which appeared in fifth place last year, is no longer listed as one of the 10 most used flavors. However, vanilla is a new flavor for the top 10, appearing in sixth place. Read full article

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COMPANY SPOTLIGHT

The Pepsi Bottling Group

The Pepsi Bottling Group has confirmed its previously stated third quarter and full year 2008 earnings per share guidance. The company affirmed that it will generate diluted earnings per share of $1.02 to $1.06 in the third quarter of 2008, representing comparable growth of 4% to 7% over the prior year.

Top-line growth for the third quarter of 2008 is expected to be up about 3%, driven by strong net revenue per case growth in each of the company's geographies. Worldwide volume in the quarter is expected to be down in the mid-single digits, reflecting soft economic conditions globally.

The companny expects 2008 comparable diluted earnings per share of $2.30 to $2.38, top-line growth in the mid-single digits, comparable operating profit growth in the low-single digits, and operating free cash flow of about $620 million.

Eric Foss, president and CEO of the Pepsi Bottling Group, said that the company continues to successfully execute a strategy that has enabled it to generate solid financial results in a challenging global business environment. He added that the company remains confident that it will deliver on its earnings objectives for the third quarter and the full year.

Key facts

The Pepsi Bottling Group, Inc.
1 Pepsi Way
Somers
NY 10589
United States

Tel: 1 914 767 6000
Fax: 1 914 767 7761
Web: www.pbg.com

New York Ticker: PBG
No. Employees: 64,700

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SUBSCRIPTION INFO

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