Consumer Goods Registry: Beverage

PepsiCo and Coca-Cola continue to dominate the non-alcoholic beverage industry, while there were major shake ups in the alcoholic beverage category among InBev, SABMiller, Heineken and Molson Coors. Mergers, de-mergers and acquisitions mean Anheuser-Busch, Scottish & Newcastle and Cadbury-Schweppes make their final appearances on this year's list.

   

COMPANY
2007 SALES (millions) YEARLY SALES GROWTH  

BRANDS
1  PepsiCo Inc.  $39,474  12% Lipton Iced Teas, Naked, Tropicana
2  The Coca-Cola Company  $28,857  20% Glaceau Vitaminwater, Minute Maid
3  InBev  $19,730*  7% Beck's, Leffe, Stella Artois
4  Anheuser-Busch Companies Inc.  $18,989  6%  Bacardi Silver, Bass, Michelob
5  SABMiller plc  $18,620  22% Grolsch, Imperial, Peroni
6  Heineken N.V.  $17,177*  6% Amstel, Cruzcampo, Murphy's
7  Kirin Holdings Co. Ltd.  $15,779  8% Chateau Mercian, Gogono-Kocha, Kirin Ichiban Shibori
8  Asahi Breweries Ltd. $14,597*
 1% Asahi Super Dry, Nikka Whiskey
9  FEMSA  $13,516  8% Ciel, Coca-Cola, Dos Equis
10  Diageo plc  $10,228*  3% Captain Morgan, Guinness, Smirnoff
11  Pernod Ricard  $8,807*  9% Absolut Vodka, Ballantine's, Jameson
12  Carlsberg Group  $8,215*  9% Carls, Holsten, Jacobsen
13  Cadbury Schweppes plc  $7,971  11% Trident, Sunkist, Snapple
14  Molson Coors Brewing Company  $6,191  6% Creemore Springs, Blue Moon, Keystone
15  Grupo Modelo S.A.B. de C.V  $6,036*  24% Corona, Estrella, Leon
16  Scottish & Newcastle plc  $5,673*  87% John Smith's, Kronenbourg, Strongbow
17  Parmalat Group  $5,283*  6% Chef, Kyr, Santal
18  Constellations Brands Inc.  $5,216  13% Pacifico, Robert Mondavi, SVEDKA Vodka
19  Foster's Group Ltd.
 $4,663  4% Beringer Wine Estate, Carlton, Crown Lager
20
 Brown-Forman Corporation  $2,806  16%
Bel Arbor Wines, Finlandia Vodka, Southern Comfort
* Denotes live exchange rates on Oct. 9, 2008

Beverage News

1. PepsiCo Inc.
To position the company for continued strong growth, PepsiCo Inc. reorganized itself into three major operating units in 2007:

>PepsiCo Americas Foods (PAF), which includes Frito-Lay North America, Quaker and all Latin American food and snack businesses
>PepsiCo Americas Beverages (PAB), which includes Pepsi-Cola North America, Gatorade, Tropicana and all Latin American beverage businesses
>PepsiCo International (PI), which includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa

PepsiCo was previously organized into two operating units: PepsiCo North America and PepsiCo International. The No. 1 beverage company on our list has also advanced the global transformation of its product portfolio. In the last year alone, it announced that it acquired V Water, a leading vitamin water brand in the United Kingdom; JSC Lebedyansky, Russia's leading branded juice company; and Penelopa, Bulgaria's leading producer and seller of branded nuts and seeds, among others.

3. Inbev
Early this year, rumors swirled of an InBev/Anheuser-Busch merger. Then confirmation came in July when the companies confirmed that they would combine to create a beverage powerhouse in a deal valued at $52 billion. On a pro-forma basis for 2007, the combined company would have generated global volumes of 460 million hectoliters and revenues of $36.4 billion. At press time, InBev had just announced the North American leadership team of the combined company, naming David A. Peacock as president of Anheuser-Busch; Luiz Fernando Edmond as zone president, North America; and Joao Castro Neves as zone president, Latin American North. In other news relevant to the combined company, Anheuser-Busch established a subsidiary called 9th Street Beverages LLC to expand the company's non-alcohol business, which includes brands such as 180 Energy, BORBA Skin Balance Water, Icelandic Glacial and Monster. The new subsidiary is working on several energy, specialty and new age product concepts.

5. SABMiller PLC
A previously-announced joint venture that combined the U.S. and Puerto Rico operations of SABMiller and Molson Coors Brewing Company commenced operations under the name MillerCoors this past July. Annual pro forma combined beer sales for MillerCoors were 70.1 million U.S. barrels in 2008, which is a 1.6 percent increase versus the comparable pro forma period a year earlier. SABMiller also reached an agreement with Anheuser-Busch this year to transfer the U.S. importation rights for the Grolsch brand (pictured), an international premium lager of Dutch origin, to SABMiller's subsidiary, Miller Brewing Company. On the product development front, SABMiller deployed Sopheon's Accolade product lifecycle management system in late 2007 in order to support a new standardized process for managing initiatives within the business. The new process is part of a broad strategy aimed at improving knowledge sharing and product pipeline management across SABMiller's operating hubs around the globe.

6. Heineken N.V.
Early in 2008, Scottish & Newcastle plc (S&N) accepted a $15.5 billion takeover bid from the boards of Sunrise Acquisitions Limited, a newly incorporated company jointly owned by Heineken N.V. and Carlsberg A/S. Under the deal, the brand-owner of Kronenbourg, Newcastle Brown Ale and Strongbow cider, would split its holdings between the two larger brewers. For Heineken, which would continue to hold the remaining businesses, principally the United Kingdom and Ireland, Portuguese, Finnish, Belgian, United States and Indian operations, the transaction provides undisputed leadership in Europe and significant opportunities in profitable markets to grow the premium Heineken brand. Late in 2007, Heineken USA selected Kenosia's DataAlchemy software solution to help analyze its wealth of certain commercial data, including retail-specific, point-of-sale data. "We consistently look for tools that help us establish and maintain a competitive edge in the marketplace," said Steve Ward, vice president, Sales Strategy and Channel Activation, Heineken USA, at the time of the announcement.
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