Beer is a Numbers Game – Gulp or Get Gulped

Posted on August 23, 2011


So the news this morning in Australi was about Qantas the iconic Airline with the Kangaroo on it is a take over target. I choose to fly Qantas all the time to/from Australia for the reason some of our friends work for them and yeah they are Australian. Though they also announced this week that 1000 jobs would go, so our friends may not be SAFE anymore even though one flies them and one is an Aeronautical Engineer. I love the sound of that title!!

So interesting news today in reading about Fosters Group. No they are not Craft Beer, but they are also about to be bought by SABMiller so the profit off big beer (90%) in Australia will be owned by South Africa and Japan. Fosters is fighting off a $500million takeover by SABMiller, but like all things they will turn when the directors get offered nice payouts. So what’s the story in this, well Beer Sales fell 5% blamed on Wet Weather and the faltering economy. But the big news is that CRAFT BEER for the Group was up 39%.

So what is the Craft Beer Segment of Fosters Group ? Well I had to look myself and it is Matilda Bay that was initially formed out in Western Australia in 1990, but was bought out at some point by Fosters. The Brands they produce are definitely ‘Craft’ for the Australian market but definitely not anywhere in what you would call it on the US Market.

The Alpha Pale Ale was my favorite beer in terms of what’s produced by them, but its still a light beer compared to the now available Sierra Nevada IPA. So if Fosters is making more money on Craft Beer it would be great to see the Sales Managers have some balls and put on some more IPA’s instead of the usual taps of VB.

Boston Beer Company reported their results in the US and stated that the year is up for profit but the margins are getting tougher due to higher marketing costs. Yes Sam Adams does make craft beer and their Seasonals are somewhat nice, but only when fresh off tap.