Analyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst
SABMiller Plc’s move to buy the majority family-owned Heineken NV was a surprise to the global beer industry, but it being rebuffed was not. This seems to be a defensive move by SABMiller and a reactionary one to speculation of an Anheuser-Busch NV take-over at a time when the latter is accumulating capital in preparation for the biggest ever buy-out in the beer market. Heineken’s decision to rebuff the offer is of no surprise due to the majority ownership by the de Carvalho-Heineken family.
According to Euromonitor, the consequences of this buyout would significantly reshape the competitive landscape for the global beer market as the second and third largest brewers would bring together over 37 billion liters of beer sales at around a 19% share of global market volume sales in 2014. The combined companies would reassert their dominance on the beer market in Western and Eastern Europe, and Middle East and Africa (MEA) placing them on the heels of Anheuser-Busch InBev NV in second place on a global level with less than 1% volume share separating the top two brewers. A-B InBev’s chances to buy out SABMiller, as speculated by the industry, would weaken as the capital required for the buy-out significantly expands. Furthermore, A-B InBev would have to deal with a major competitor in future consolidation moves, beyond those that would already exist.
Continue reading "Heineken NV rebuffs the SABMiller Plc bid" »
Analyst Insight by Michelle Evans - Senior Consumer Finance Analyst
The vision that Apple’s founder Steve Jobs once had of a new type of mobile phone that could become so instrumental and integrated into people’s lives that consumers would rather leave their wallet at home than their iPhone is starting to take shape.
After years of speculation and numerous rumors, Apple officially made its entry into the US mobile payments’ ecosystem as it unveiled Apple Pay at its recent product launch event. Mobile payments, which has long been promised for its potential to revolutionize the entire consumer shopping experience has so far struggled to gain much traction from retailers and consumers. Now a brand with a proven track record of changing consumer behavior has joined the movement.
“As it turns out, most people who have worked on this have started by focusing on creating a business model that was centered around their self-interest rather than focusing on the user experience,” Apple CEO Tim Cook said at the Apple Pay announcement. “We love this kind of problem. This is exactly what Apple does best.”
Continue reading "With Apple Pay, Mobile Payments Have Arrived in the US" »
Analyst Insight by Jeremy Cunnington - Senior Alcoholic Drinks Analyst
William Grant’s acquisition of Drambuie- the Scotch based liqueur- for an undisclosed price, is strategically sound, giving the company entry into the burgeoning flavoured whisky/whisky flavoured liqueurs arena through a brand of uniquely strong heritage in the category. It also fits in with the company’s increased focus on the resurgent segment underscored with the recent appointment of a Head of Whisky Innovation.
With only 0.7% of global sales in other liqueurs in 2013, Drambuie is a small brand, but has huge potential due to the rise in popularity of flavoured whiskies and whisky based liqueurs, led by the bourbon category. The brand’s small size and the fact that it is essentially an one brand company with small resources limits that potential even in its biggest markets the US, Canada and the UK.
Continue reading "William Grant Acquires Drambuie " »