Craft beer deal is a test case of ESG bona fides 13 Dec 2019 Kirin’s Myanmar ties threaten to upset the Japanese brewer’s plans to buy Colorado’s New Belgium. The employee-owned firm talks a good game on social responsibility. This is no abstract ESG instance, though: These investor-owners get to put their money where their mouths are.
AB InBev gets dragged back into M&A dilemma 25 Oct 2019 The Budweiser maker said profit in the third quarter was stagnant, and volumes declined in China. That puts pressure on boss Carlos Brito to do more deals. Yet the world’s top brewer is still working off a debt hangover, and the weak performance makes dealmaking harder.
Hong Kong’s IPO debutants rely on helping hands 24 Sep 2019 AB InBev raised $5 bln through a relaunched float of its Asia unit, but only after pre-selling stock and pricing it low. There’s appetite for listings in the city despite ongoing protests, but at a discount and with cornerstone support. Followers may need to take the same tack.
AB InBev returns to Hong Kong with a soberer pitch 18 Sep 2019 The Belgian brewer’s Asia unit has relaunched its failed IPO with a lower $4.8 bln target, offering a better growth story at a similar valuation. CEO Carlos Brito may fetch more for the business than he originally wanted, too. Flourishing in a rocky market will be the tough part.
Kirin’s Japanese makeover is only half pretty 7 Aug 2019 The Japanese brewer is buying 30% of cosmetics and kale juice maker Fancl for $1.2 bln. Diversifying away from booze makes sense; rivals are doing it too. But paying a multiple of almost 40 times earnings, over twice the buyer’s own, for a minority stake is not a good look.
AB InBev’s deal machine goes into smart reverse 19 Jul 2019 The brewer’s sale of its Aussie unit to Asahi for $11 bln will cut debt. The Japanese are paying a valuation less than AB InBev wanted from its botched Asia IPO but probably more than investors ascribed to the unit. It keeps the door open for boss Carlos Brito to try again.
Morgan Stanley’s Asian crown gets Bud-shaped dent 15 Jul 2019 The Wall Street bank, along with JPMorgan, led AB InBev’s now-scrapped $9.8 bln listing of its Asia unit. The bankers either misread the market, or caved into the clients’ pricing demands. Either way, it takes the shine off Morgan Stanley’s local league-table pre-eminence.
Budweiser serves up a pricey pint in Hong Kong 2 Jul 2019 AB InBev values its Asian unit at up to $65 bln, or about 20 times EBITDA. That’s close to multiples of rivals in fast-growing emerging markets like China, but half the business is in slower, more mature ones. The IPO will seem less giddy if Carlos Brito pours on M&A next.
Budweiser’s Hong Kong IPO may pop open more M&A 10 May 2019 AB InBev has filed documents to float its Asian business. It will fetch a higher valuation multiple than its parent, and could be worth some $60 bln, helping to pay down some debt. The shares also give deal junkie boss Carlos Brito a currency to shop for more.
AB InBev’s Asia sale needs breathalyser test 14 Jan 2019 The Belgian brewer is said to be mulling an IPO of its Asian unit. The region is a fast-growing jewel in the drinks giant’s crown, yet it faces stiff competition in China, and still struggles in India and Southeast Asia. The mooted $70 bln valuation will be tough to keep down.
Constellation finds pipe dreams and debt don’t mix 9 Jan 2019 Higher costs and slower shipments hit the Modelo brewer’s earnings. The real driver of value ought to be its 38 pct stake in weed grower Canopy. But valuing its future potential is nigh impossible – whereas the debt Constellation used to fund its cannabis punt is all too real.
Carlsberg’s drinking game victory looks temporary 16 Aug 2018 The Danish brewer’s second-quarter sales grew a better-than-expected 7.6 pct. The World Cup turned its big Russian business from a drag into a boon. While Carlsberg now trades at a premium to Heineken and AB InBev, less exposure to emerging markets means the bump is temporary.
Race is on to be the Netflix of weed 15 Aug 2018 Constellation Brands’ $4 bln investment in cannabis producer Canopy Growth could kick off a feeding frenzy, akin to that over media content. Beer isn’t the only industry with turf to defend or skills applicable to marijuana. Valuations could get even higher than the customers.
Temperance is the new craft beer for drinks groups 28 Dec 2017 Health awareness and restrained young drinkers are driving demand for booze-free tipples. Growth in volumes of low-alcohol beer will outstrip traditional drinks fivefold next year. It’s a new source of expansion for global companies as the craft beer craze loses its froth.
Control could justify tycoon’s pricey Saigon pint 15 Dec 2017 A $4.6 bln bid from Charoen Sirivadhanabhakdi for 51 pct of Sabeco, maker of Bia Saigon, relies on political influence and a pliable local partner. That might help the ThaiBev owner to skirt foreign ownership rules, and wring out efficiencies to stack up a frothy valuation.
Global giants see Vietnam through beer goggles 1 Dec 2017 The young, hops-happy country is in the sights of big brewers like Asahi and AB InBev. Global growth is as dull as a flat pint. But the presence of entrenched interests, tech-like multiples and the mixed experience of early players should give pause.
Cox: Japanese beer could use some home-brew 7 Aug 2017 Sapporo just acquired San Francisco's Anchor Steam, a godfather of American craft ale. Kirin already bought a stake in Brooklyn while Asahi took over Peroni and Grolsch. All three are profit laggards. Overseas shopping diverts from a more pressing matter: consolidation in Japan.
Whiskey and wine can make fine corporate cocktail 24 May 2017 At first blush, Constellation Brands, with roots in an upstate New York vineyard, and Brown-Forman, maker of Confederate tipple Jack Daniel's, seem to have little in common. But a heritage of family control, maintained via dual-class shares, makes a $56 bln union look doable.
Heineken ought to depose the King of Good Times 21 Apr 2017 The Dutch brewer is the largest shareholder in India's biggest beer maker. An embarrassing agreement with arrested tycoon Vijay Mallya leaves Heineken bound to accept him as chairman. Heineken should lead a charge to sack him anyway and hope to win any resulting legal battle.
Mallya arrest could energise India bad debt fight 18 Apr 2017 Liquor baron Vijay Mallya fled to the United Kingdom after banks sued to recover $1.4 billion. If his arrest leads to extradition it would make an example of the poster child of India’s bad loan problem. That would help New Delhi sell any bailout of state banks to the public.