Anhui Biopin IOT Group

Danish brewer Carlsberg said the summer months had been “tough” as poor weather and a slowing economy in China weighed on its financial performance.   The maker of canned beers including Kronenberg 1664 and craft brands such as Brooklyn Lager suffered a decline in shipments of its premium beers in the third quarter (Q3) while sales were flat. Its ‘low-no’ products category surged, however, adding justification for the company’s USD3.9 billion purchase of UK-based soft drinks brand Britvic.   Sales to the end of September rose 1.3% to DKK20 billion (USD2.9bn). Sales for the year-to-date were 3% higher at DKK58bn.    Global shipments of its 140 beverage brands slipped slightly in the quarter and fell 1% in the year-to-date, even though they increased 5% in Central and Eastern Europe and India, and lifted slightly in Western Europe. Declines were most pronounced in Asia, where they dropped more than 5%.    “It was a tough quarter, impacted by a challenging consumer environment and weather,” said chief executive Jacob Aarup-Andersen. “Nevertheless, we delivered volume and revenue growth in the majority of our markets, although lower volumes in China, France and the UK impacted overall Group performance.”    Western brewers are struggling in China, where Carlsberg has 26 breweries, as the nation’s economy wilts under the weight of a slump in a property market that underpins per-capita wealth. The world’s largest brewer, Anheuser-Busch InBev also reported relatively strong global results that had been undermined by weakness in its Chinese operations.   Carlsberg said that while premium brands such as Carlsberg and Brooklyn Lager remained strong performers worldwide – chalking up volume growth of 11% and 9%, respectively – overall sales in the segment were weak, dropping by half a percentage point.   However, alcohol-free beer sales jumped 6% and Carlsberg’s Beyond Beer range of spirits and canned cocktails surged 10%.   Soft drinks had a 4% sales increase. Carlsberg said in its latest report that the purchase of Britvic had been agreed by a majority of shareholders and the deal is expected to close early next year.    The British soft drinks giant distributes products for PepsiCo, with which Carlsberg has a similar deal in Europe. It has reported strong sales performance in the past three years and is expected to add fire to Carlsberg’s already strong non-alcoholic beverage range, which includes canned brands such as Tuborg Soda.   Aarup-Anderson forecast said the company expected its fortunes to strengthen with the addition of PepsiCo’s Kazakhstan and Kyrgyzstan operations to its portfolio in January and from the acquisition of the portion of British brewer Marston’s that it doesn’t already own.

US drinks brand Me & the Bees Lemonade is celebrating its 15th anniversary by switching from glass bottles to aluminium cans.     The 12-ounce sleek cans are manufactured by Crown and contain up to 80% recycled aluminium, chief marketing officer D’Andra Ulmer told The Canmaker.    Me & the Bees Lemonade works with a co-packer, which fills the cans, she added.   All five of the brand’s flavours – Classic,‬ Prickly‬ Pear,‬ Black‬ Cherry,‬ Passion‬ Fruit‬ and‬ Very‬ Berry – will move to the new packaging.    “We’re‬ buzzing‬ with‬ excitement‬ about‬ a‬ brighter,‬ more‬ sustainable‬ future,”‬ said‬ Mikaila‬ Ulmer,‬ chief executive‬ of‬ Me‬ &‬ the‬ Bees‬ Lemonade.‬    “As‬ a‬ member‬ of‬ Gen‬ Z,‬ this‬ new‬ packaging‬ choice‬ perfectly‬ aligns‬ with‬ our‬ growing‬ consumer‬ preferences‬ for‬ contributing‬ to‬ a‬ circular‬ economy because aluminium is the most recycled beverage packaging material in the US.”

US-based brewer Anheuser-Busch (A-B) is spending USD8 million on a series of improvements to its flagship brewery in St Louis, Missouri.   The finance is part of the nearly USD2 billion A-B has invested in upgrading equipment and production processes at facilities across the US in the past five years, most recently a USD7m overhaul of its brewery in Fairfield, California.   The commitment adds to the more than USD165m A-B has spent on the St Louis campus since 2019.   “This brewery is as iconic as the beer we brew, and these investments help ensure that we not only have the infrastructure but also the people and talent to build on our legacy for generations to come,” said A-B’s chief executive Brendan Whitworth.   The financial injection follows a challenging period for the company whose beers include Budweiser and Bud Light.    A poorly received marketing campaign in the US last year for Bud Light, which at the time was the nation’s best-selling beer, led to a significant fall in domestic sales and volumes, which in turn impacted the sales of Ball Corporation, A-B’s largest supplier of beverage cans.   As a result of drinkers boycotting Bud Light, Colorado-based Ball partly blamed its 11% decline in profit last year on “customer exposure to a US mass beer brand disruption”.    In May 2023, Constellation Brands’ Modelo Especial beer took the country’s top sales spot and volumes at A-B continued to fall in the first three months of this year.   Founded in St Louis more than 165 years ago, A-B is part of the Belgium-based Anheuser-Busch InBev Group, the world’s largest brewer, and which also produces the Stella Artois brand.