Wineries count cost of smoke on premium grapes

Original article by Simon Evans
The Australian Financial Review – Page: 16 : 14-Jul-20

Tyrrell’s Wines stated in late January that it might not be able to use 80 per cent of its grape crop because of smoke taint from the summer bushfires. However, MD Bruce Tyrrell says it ended up not being able to make wine from 85 per cent of its crop, with most of the grapes it could not use being consumed by cattle. He says the problem of smoke taint from bushfires is something the wine industry is likely to have to deal with again some time in the next 10 years. Cassegrain Wines, which had its grape intake cut by 70 per cent because of smoke taint, will be part of a three-year research project that will look at new ways of dealing with grapes exposed to smoke.

CORPORATES
TYRRELL’S VINEYARDS PTY LTD, CASSEGRAIN VINEYARDS

Packaged beer the new normal for big brewers

Original article by Eli Greenblat
The Australian – Page: 17 : 31-Mar-20

Australian brewers have responded to the coronavirus-induced closure of the nation’s pubs by shifting their focus to producing beer in cans and bottles rather than kegs. Coopers Brewery’s MD Tim Cooper says kegs usually account for about 15 per cent of the family-owned firm’s volumes, but it is currently not producing any keg beer. He adds that Coopers’ sales in March have been 30 per cent higher than expected as consumers flock to liquor stores. Carlton & United Breweries and Lion are also focusing on the packaged beer market.

CORPORATES
COOPERS BREWERY LIMITED, CARLTON AND UNITED BREWERIES, LION PTY LTD

Coopers breached covenants, but it’s only small beer

Original article by Eli Greenblat
The Australian – Page: 13 & 14 : 23-Dec-19

Coopers Brewery’s 2019 financial report shows that shareholders received a total of $13.789m in dividend payments during the last year. Coopers has also disclosed that its banking covenants were breached in June, although the brewer obtained a waiver from its lender. Meanwhile, Coopers’ net profit fell by 31 per cent in 2019, to $16.4m. Coopers is the largest Australian-owned brewer, and the Coopers family comprises the bulk of its shareholders.

CORPORATES
COOPERS BREWERY LIMITED, CARLTON AND UNITED BREWERIES, ASAHI BREWERIES LIMITED, ANHEUSER-BUSCH INBEV SA/NV, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LION PTY LTD

Penfolds loss in China counterfeit wrangle

Original article by Eli Greenblat
The Australian – Page: 19 : 9-Dec-19

The Beijing High Court has overturned a previous decision by a Beijing intellectual product court. The latter had thrown out a trade mark used by winery Rush Rich, with its labelling similar that used by Treasury Wine Estates’ Penfolds brand. Treasury Wine Estates has been trying to get the ‘copycat’ Rush Rich label outlawed by the Chinese courts for two years, while it prosecuted an intellectual property case against Rush Rich earlier in 2019 and was awarded $375,302 in compensation.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD, RUSH RICH, HIGH COURT OF BEIJING

Lion to go to next level green in beer brewing

Original article by Elouise Fowler
The Australian Financial Review – Page: 32 : 15-Nov-19

Australian brewer Lion has announced that it intends to become carbon neutral by 2020. Lion’s current efforts in this area include solar panels on its Geelong and Brisbane breweries, while the latter collects the biogas emitted from the beer fermentation process to use as fuel to power some of the plant’s steam boilers. Lion announced its carbon neutral target ahead of the 15 November launch of Climate Active, which is the re-branded name of the federal government’s carbon neutral certification project.

CORPORATES
LION PTY LTD

Beer giant CUB expands into wine

Original article by Simon Evans
The Australian Financial Review – Page: Online : 17-Sep-19

Beer company Carlton & United Breweries has purchased Riot Wine Co, which sells wine in aluminium cans and kegs. Riot Wine was established in 2016 by Joe Cook and Tom O’Donnell, with 90 per cent of its sales coming from on-tap wine in bars and hotels. CUB sales vice-president Rose Scott says Riot’s management will continue to run the company, while she says that CUB has no further wine investments in mind at this stage.

CORPORATES
CARLTON AND UNITED BREWERIES, RIOT WINE CO

Treasury Wine answers critics with big profit

Original article by Eli Greenblat
The Australian – Page: Online : 16-Aug-19

Treasury Wine Estates released its 2018-19 results on 15 August, with the company reporting a net profit of $419.5 million, up 16 per cent. Sales increased by 17 per cent to $2.831 billion, while Treasury Wine declared a final dividend of $0.20 per share, up from $0.17. Its earnings in Asia rose 43 per cent to $293.5 million, while earnings in the Americas and Australia rose 13 per cent and 15 per cent respectively. As well as releasing its full year results, Treasury Wine also advised it had acquired the French winery Cambon La Pelouse.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, CAMBON LA PELOUSE

Divestments on cards in Asahi CUB buyout

Original article by Simon Evans, Tim Boyd
The Australian Financial Review – Page: 13 & 16 : 23-Jul-19

Asahi Beverages Australia’s executive chairman Peter Margin has downplayed suggestions that the acquisition of Carlton & United Breweries may force the Japanese group to sell some beer brands due to competition concerns. CUB is estimated to have a 48.8 per cent share of the Australian beer market, while the market share of Asahi’s brands is about 1.2 per cent. CUB may have increased its market share in June after it engaged in heavy price discounting and trade loading in the lead-up to the end of the financial year.

CORPORATES
ASAHI BREWERIES LIMITED, CARLTON AND UNITED BREWERIES, ASAHI BEVERAGES AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LION PTY LTD, COOPERS BREWERY LIMITED, ANHEUSER-BUSCH INBEV SA/NV, SABMILLER PLC, FOSTER’S GROUP LIMITED, STONE AND WOOD BREWING COMPANY PTY LTD

Asahi puts $16bn on bar for CUB

Original article by Bridget Carter, Eli Greenblat
The Weekend Australian – Page: 25 & 28 : 20-Jul-19

Japan-based Asahi is set to acquire Carlton & United Breweries in a $16bn deal, subject to approval by the Foreign Investment Review Board and the Australian Competition & Consumer Commission. The deal includes beer brands such as Victoria Bitter and Carlton Draught, and is expected to be finalised in the March 2020 quarter. Asahi secured the deal after Anheuser-Busch InBev abandoned plans for an IPO of its Asian brands, including CUB. The IPO documents show that CUB had a 48.8 per cent share of the Australian market in 2018, while rival brewer Lion – which is owned by Japan’s Kirin – had a 36.4 per cent market share.

CORPORATES
CARLTON AND UNITED BREWERIES, ASAHI BREWERIES LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ANHEUSER-BUSCH INBEV SA/NV, LION PTY LTD, KIRIN HOLDINGS COMPANY LIMITED

Australian winemakers stockpile supplies in Europe as hard Brexit beckons

Original article by Hans van Leeuwen
The Australian Financial Review – Page: 3 : 14-Jan-19

The prospect of a no-deal Brexit presents a big headache for the Australian wine industry. Australia is the biggest source for UK wine imports, with about 240 million litres of Australian wine exported to the UK each year. Of that, 80 per cent is sent in bulk and is bottled in the UK, with 25 per cent of that then being re-exported to the European Union. A no-deal Brexit is likely to result in delays in shipments of Australian wine from the UK as a consequence of new customs procedures. Winemakers are already stockpiling supplies in Europe, while in the longer term they may decide to choose to bottle wine in Europe or export bottled wine directly from Australia to Europe.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, CASELLA WINES PTY LTD, AUSTRALIAN VINTAGE LIMITED – ASX AVG, THE YALUMBA WINE COMPANY, ACCOLADE WINES LIMITED