United Kingdom: InBev will become Britain's second biggest brewer after Beck's deal
The world's biggest brewer, InBev announced on June 10 it will become Britain's second biggest brewer when it takes full control of Beck's beer in the UK during August and then looks to challenge for top spot, according to Reuters. "We are about to become number two in the UK and have every intention of becoming number one over time," Chief Executive John Brock told a briefing in London.
The group which brews Stella Artois, Tennent's and Castlemaine beers in Britain said it will gain around one percentage point in UK share to take it to 19.8 percent and ahead of Molson Coors Brewing Co. on 18.8 percent.
Britain is the world's seventh biggest beer market by volume, but one of the top three by profitability.
Last month, InBev agreed to pay Britain's biggest brewer, Scottish and Newcastle Plc, some 77 million pounds to gain control of Beck's in the UK seven years early. InBev bought Beck's in 2001, but S&N held the sole distribution rights in the UK for the German-brewed beer until 2012.
InBev say Beck's will be integrated fully into its UK portfolio from August 7, and expects to put an extra marketing push behind Beck's once it gets control in the UK.
Belgian-based InBev has gained market share in Britain over a number of years led by the growth of Stella Artois, and its long-term hope is to catch current leader S&N.
Analysts said that the Foster's and Kronebourg brewer S&N controls around a 27 percent UK beer market share, including Beck's, while the smallest of Britain's four national brewers, Carlsberg UK, has a 12 percent share.
InBev has recently trimmed its UK breweries, closing its Belfast brewery last year and Manchester early this year, leaving three - Samlesbury in northwestern England, Magor in South Wales and Glasgow in Scotland.
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