Article Abstract:
British brewers have seen drops in their stock prices in the half year to Feb 2000, with Scottish and Newcastle down to half its value, and Bass has seen a drop of 40% despite planning to sell its brewing activities. Margins have been affected by price competition, the European Union working time directive, and the minimum wage. Brewers have to reduce overheads and make efficiency savings, as well as increasing retail sales through supermarkets and liquor stores. This involves investment in marketing, which can be expensive. Stocks in this industry could be attractive as a long term investment.
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Article Abstract:
The UK brewing industry has been affected by a drop in beer sales and an increase in the proportion of sales for home consumption rather than consumption in pubs. The industry has also restructured following limits on the number of tied pubs that brewers could hold. Brewing capacity has been reduced and companies have invested in marketing to strengthen brands. There is less clarity over the definition of a pub as pubs have sought to attract families and focus on food.
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Article Abstract:
The British brewing industry faces decline, with overcapacity and a shrinking market. The four major brewers Carlsberg-Tetley, Bass, Whitbread and Scottish and Newcastle control 84% of the beverage market. They face competition from strong national companies and some players argue that consolidation of regional brewers is needed to create a major regional player. The stocks for companies in this sector may appear cheap but are unlikely to rise until consolidation restarts on a large scale.
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