BREWING
Greene King pub giant snapped up by Hong Kong rm CKA
beer! Partnering with Asahi to deliver this is truly exciting and provides security and opportunity for our customers, consumers and wider Green Beacon family. Our goal has always been to make the best beer and to get it into as many people’s hands as possible. In Asahi, we have a partner who shares this commitment and can support us in achieving this goal.” UK - Beer sales fall across the bar • Total beer sales decreased by 2.2% in Q2 2019 on the same period in 2018 • In the on-trade (e.g. pubs), beer sales decreased by 2.8% on the same quarter in 2018 • Off-trade sales of beer decreased by 1.7% on the same quarter in 2018 Beer sales in the second quarter of 2019 were down 2.2% on the same period in 2018, according to the latest Beer Barometer sales data from the British Beer & Pub Association. The slump was driven by falling beer sales in the on-trade, otherwise referred to as pubs and bars, which decreased by 2.8% on the same period in 2018. Sales of beer in the off-trade, which refers to outlets such as supermarkets and off-licence shops, also fell – decreasing by 1.7% on the same quarter in 2018. The BBPA has highlighted that the decline was against a particularly strong Q2 2018, where sales were boosted by a long period of good weather and the group stages of the World Cup. Beer sales in the on-trade, however, remain under consider- able pressure generally with pub numbers continuing to decline as a result of high taxes including beer duty. The BBPA is continuing to support the “Long Live The Local” campaign – from Britain’s Beer Alliance – which is calling for a cut in beer duty to decrease the signi cant cost pres- sures pubs face and help give them a boost. The trade association also supports action on business rates, which it claims are overdue for reform. British brewers decrease their CO 2 emissions by 42% Total CO 2 emissions from the UK’s brewing industry have fallen by 42% in the last decade (2008 to 2018) - a reduction of 202,952 tonnes - according to new research conducted by the British Beer & Pub Association (BBPA). The research also found that the energy used to brew a pint of beer in the UK is now 20% less than it was in 2008. The water required to brew one hectolitre of beer has
such as ‘UpperCut Double IPA’. The Teneriffe site also includes a brew- pub and bar, which is open to the public and operates as a much-loved community hub. This is supplemented by additional in-house production and distribution facilities located in Geebung, north Brisbane. Peter Margin, Executive Chairman, said: “This is a very exciting time for our busi- ness, as we add this great brand and great business to the Asahi Beverages family. We are looking forward to working with Marc and Adrian to help grow the Green Beacon business, and bring their great tasting beer to more consumers.” Adrian Slaughter, co-founder and on-go- ing General Manager at Green Beacon, said: “Green Beacon has grown from just myself and Marc to 40+ team members across the nation in just eight years. We want to continue growing and maintaining the quality and integrity of our beers, whilst ensuring all Australians are kept amply supplied in great long leasehold on 81% of its proper- ties. The company recently carried out a revaluation of its property estate that indicated a market value of £4.5bn against the £3.5bn book value,” he said. CKA was founded by Hong Kong’s richest man Li Ka-Shing, whose busi- ness empire spans retail, telecoms and power rms. Mr Li retired from leading the rm last year. He was ranked 28th in this year’s Forbes rich list. He started work sweeping factory oors as a young boy, but subsequently became one of the rst Hong Kong tycoons to invest in mainland China, with property playing a big part in his wealth. BBC recommend it to shareholders who will get the nal vote on the tie-up. Shares in Greene King surged more than 50% after the deal was announced. Neil Wilson, analyst at Markets.com, said while the deal was good news for shareholders, it was likely to be bad news for Greene King’s customers. “I think we can comfortably expect more pub closures. It’s a whopping [price] that implies CKA sees signi cant value in the property portfolio,” he said. In its statement, Greene King said CKA had no plans to make “material changes” to group and management staff numbers and did not intend to “ini- tiate any material headcount reductions within the Greene King organisation as a result of the acquisition.” “Greene King owns the freehold or
Asahi Holdings Australia to purchase Green Beacon Brewery Asahi Holdings (Australia) is delighted to announce that we have signed a sale pur- chase agreement to acquire a 100% stake in Green Beacon Brewing Co, a Brisbane- based craft brewer. Green Beacon has a well-established reputation in the Australian craft beer segment, cemented by winning Champion status three years running at the Australian International Beer Awards. Green Beacon was founded in 2013 by Adrian Slaughter and Marc Chrismas, two school friends who have been at the forefront of the burgeoning and exciting craft beer scene in Queensland. With two Brisbane breweries located in Teneriffe and Geebung, Green Beacon’s range of beers includes Windjammer IPA, Wayfarer Tropical Pale, 3 Bolt Pale Ale, Half Mast India Session ale, Seasonal releases like ‘The Whaler’ and special release beers our business and we welcome their commitment to working with the exist- ing management team, evolving the strategy and investing in the business to ensure its continued long-term growth,” he added. Greene King’s directors said the terms of the deal were “fair and reason- able” and that they would unanimously UK pub giant and brewer Greene King has agreed to be bought by Hong Kong operator CKA, the latest deal in a wave of consolidation in the sector. Suffolk-based Greene King owns roughly 2,700 pubs, restaurants and hotels in total across the UK. The deal values Greene King at £2.7bn. The move comes just months after Fuller’s, the brewer whose beers include London Pride, sold its entire drinks busi- ness to Japan’s biggest brewer Asahi. Greene King chief executive Nick Mackenzie said CKA shared “many of Greene King’s business philosophies”. “They understand the strengths of
14 ● BREWER AND DISTILLER INTERNATIONAL I october 2019
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