<<

. 8
( 11)



>>

e
1765
Hennessy (FR)
1970
Mercier (FR)
1987
Veuve Cliquot (FR)
1925
Modelo MEX Corona (MEX)
1935
Victoria (MEX)
1966
Modelo Especial (MEX)
1786
Molson-Coors US Molson (CAN)
1874
Original Coors (US)
1978
Coors Light (US)
1989
Keystone Light (US)
2000
Bavaria (BRA)
2001
Carling (US)
2002
Kaiser Pilsen (BRA)
201
Appendix 2

Table a2.1 (Continued)

Date of
Addition to
Country
the Portfolio
Multinational of Origin Brand (origin)

1932
Pernod Ricard FRA Ricard (FRA)
1975
Jacob™s Creek (AUS)
2000
Chivas Regal (CAN)
2001
Martell (FRA)
2005
Ballantines (UK)
2005
Beefeater (UK)
2005
Kahlua (MEX)
2005
Malibu (UK)
1724
R´ my
e FRA R´ mi Martin (FRA)
e
1849
Cointreau Cointreau (FRA)
1988
Piper Heidsieck (FRA)
2000
Bols (NL)
2001
Metaxa (GRE)
1999
SABMiller SA Pilzner Urquell (CZR)
2002
Miller Genuine Draft (US)
2002
Miller Lite / Lite Ice (US)
2003
Peroni Nastro Azzuro (IT)
2005
Aguila (COL)
1890
San Miguel PHIL San Miguel (PHIL)
Pale Pilsen (PHIL) n/a
Red Horse (PHIL) n/a
Gold Eagle (PHIL) n/a
1995
Scottish & UK John Smiths (UK)
2000
Newcastle Kronenbourg (FR)
2002
Baltika (RUS)
2003
Sagres (POR)
1876
Sapporo JPN Sapporo (JAP)
1995
Sapporo Happoh Shu (JAP)
1923
Suntory JAP Yamazaki (JAP)
1937
Kakubin (JAP)
1989
Ibiki (JAP)
1903
Tsingtao CHI Tsingtao (CHI)

Sources: Compiled from companies™ annual reports, monographs, and newspapers.
Appendix 3
Annual Sales for Each Firm in Alcoholic Beverages
Table a3.1. Annual sales by ¬rm in alcoholic beverages from 1960 to 2005

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Firm

Adolph Coors n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,275 1,369 1,412 1,812 1,948 2,045 2,217 2,531 2,991 3,128
Allied Domecq “
Ambev “ “ “ “ “ “ “ “ “ “ “
1,186 1,185 1,256 1,303 1,403 1,547 1,721 1,986 2,345 2,412 2,696
Anheuser Busch
54 75 75 170 167 205 221 216 213 240 178
Arthur Bells




202
Artois n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
291 411 387 410 499 472 457 1,136 918 517 533
Asahi Breweries
Bacardi n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
431 536 863 1,062 1,250 1,333 1,504 1,766 2,434 2,723 2,794
Bass
179 202 228 240 247 285 311 481 505 372
Brauerei Beck n/a
392 390 419 455 462 506 553 587 644 720 744
Brown Forman
911 1,021
Carlsberg n/a n/a n/a n/a n/a n/a n/a n/a n/a
Companhia Antarctica n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Paulista
Cornpanhia Cervejeira n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Brahma
Constellation Brands / n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Canandaigua
292 614 717 729 799 817 824 708 796 888 940
Courage
Diageo “ “ “ “ “ “ “ “ “ “ “
2,512 2,818 2,879 3,048 3,156 3,547 3,539 3,571 3,090 3,302 3,046
Distillers Company
E. & J. Gallo n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
5,068 5,186 5,298 5,278 5,237 5,253 5,124 5,345 6,825 9,624 9,092
Fortune Brands / American
Brands
1,007 1,185 1,099 2,161 2,252 2,106 2,307 2,149
Foster™s Group / Foster™s n/a n/a n/a
Brewing / Elders IXL
72 72 116 90 104 111 115 151 213 289 372
G. Heileman Brewing
39 193 190 242 274 268 293 372 1,979
Grand Metropolitan “ “
737 783 870 909 997 1,097 1,214 1,291 1,184 1,406 1,482
Guinness
117 132 133 140 162 174 205 236 276 517 545
Heineken
395 413 445 463 507 607 1,178 1,298 1,381 1,884 1,992
Heublein
1,742 1,698 1,685 1,684 1,722 1,803 1,883 1,957 2,116 2,317 2,328
Hiram Walker
Holsten n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
308 354 431 461 500 697 864 863
International Distillers & “ “ “




203
Vintners
Inbev “ “ “ “ “ “ “ “ “ “ “
Interbrew “ “ “ “ “ “ “ “ “ “ “
305 315 327 328 327 339
Jim Beam “ “ “ “ “
806 1,002 1,214 1,388 1,667 1,650 1,892 2,101 2,417 2,806 3,569
Kirin
250 251 261 287 319 338 277 327 428 819 998
John Labbatt
2,085 1,973 1,920 1,906 1,875 1,754 2,073 2,261 2,220 2,382 2,368
Liggett & Myers
Lion Nathan “ “ “ “ “ “ “ “ “ “ “
619 663 710 675
Miller Brewing (part of n/a n/a n/a n/a n/a n/a n/a
Phillip Morris)
Modelo n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
41 44 51 58 64 68 80 93 91 99
Mo¨ t & Chandon
e “

(continued)
Table a3.1 (Continued)

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Firm

340
Mo¨ t Hennessy
e “ “ “ “ “ “ “ “ “ “
Mo¨ t Hennessy LV
e “ “ “ “ “ “ “ “ “ “ “
536 715 722 812 919 993 1,018
Molson n/a n/a n/a n/a
Molson“Coors “ “ “ “ “ “ “ “ “ “ “
2,228 2,860 2,977 2,908 3,024 3,040 3,225 3,210 3,444 3,912 3,516
National Distillers
576 671 697 769 849 930 1,012 1,147 1,278 1,235 1,233
Pabst Brewing
1 1 1 1 1 2 2 3 3 3 3
Pernod
Pernod Ricard “ “ “ “ “ “ “ “ “ “ “
R´ my Cointreau
e “ “ “ “ “ “ “ “ “ “ “
San Miguel n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
509 710 787 826 897 899 830 1,070 1,093 1,257 1,081
Sapporo




204
1,467 1,552 1,421 1,517 1,511 1,687 1,716 1,854 1,978 2,325 2,275
Schenley
637 594 708 811 890 807 987 1,088 1,285 1,514 1,572
Schlitz Brewing
986 936 1,013 1,094
Scottish & Newcastle n/a n/a n/a n/a n/a n/a n/a
2,950 3,037 3,151 3,278 3,346 3,685 3,964 4,168 4,515 4,855 4,886
Seagram
133 146 148 182 204 216 228 252 588 561 713
SABMiller / South
African Breweries
Stroh n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
315 351 409 540 779 920 1,105 1,280
Suntory n/a n/a n/a
138 149 166 174 196 205 221 232 208 221 231
Truman
Tsingtao n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,184 1,265 1,176 1,114 1,244 1,290
Watney Mann n/a n/a n/a n/a n/a
321 415 708 749 1,034 1,037 1,130 1,396 1,504 1,650
Whitbread n/a
1971 1972 1973 1974 1975 1976 1977 1978 1979 1980
Firm

932 990 937 923 938 1,073 995 934 957 1,014
Adolph Coors
3,459 3,165 2,990 2,748 2,942 2,874 3,238 4,645 5,837 5,837
Allied Domecq
Ambev “ “ “ “ “ “ “ “ “ “
2,942 2,924 2,748 2,796 2,968 2,604 3,084 3,380 3,587 3,762
Anheuser Busch
228 246 272 279 326 380 128 438 552 538
Arthur Bells
Artois n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
498 573 636 451 1,067 933
Asahi Breweries n/a n/a n/a n/a
Bacardi n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
3,068 3,296 2,956 2,451 2,620 2,616 2,658 2,934 3,125 3,351
Bass
411 559 510 405 384 385 367 321 284 289
Brauerei Beck
727 818 743 609 614 662 665 683 724 772
Brown Forman
1,177 1,301 1,323 1,208 1,363 1,497 1,440 1,530 1,502 1,269
Carlsherg




205
Companhia Antarctica n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Paulista
Companhia Cervejeira n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Brahma
55 58
Constellation Brands/ n/a n/a n/a n/a n/a n/a n/a n/a
Canandaigua
1,085 1,280 1,864 1,030 1,190 1,199 1,217 1,290 1,319 1,433
Courage
Diageo “ “ “ “ “ “ “ “ “ “
3,299 3,315 2,729 2,507 2,463 2,283 2,479 2,512 2,572 2,680
Distillers Company
E. & J. Gallo n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
9,223 8,985 7,664 7,065 7,318 7,457 7,747 7,742 7,554 7,765
Fortune Brands / American
Brands

(continued)
Table a3.1 (Continued)

1971 1972 1973 1974 1975 1976 1977 1978 1979 1980
Firm

1,730 2,108 3,331 3,144 1,848 1,960 2,248 2,397 2,600 2,860
Foster™s Group / Foster™s
Brewing / Elders IXL
348 420 436 824
G. Heileman Brewing n/a n/a n/a n/a n/a n/a
2,630 5,665 5,227 4,348 4,794 4,833 4,804 5,306 5,941 6,854
Grand Metropolitan
1,697 1,781 1,407 1,258 1,353 1,345 1,458 1,843 1,881 2,079
Guinness
666 997 1,190 1,140 1,292 1,433 1,660 1,813 1,851 1,855
Heineken
2,055 2,822 2,391 2,454 2,552 2,861 2,603 2,423 2,286 2,194
Heublein
2,306 2,436 2,077 1,801 1,533 1,604 1,381 1,330 1,241 2,466
Hiram Walker




206
Hoisten n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
940 1,310 879 819
International Distillers & “ “ “ “ “ “
Vintners
Inhev “ “ “ “ “ “ “ “ “ “
Interbrew “ “ “ “ “ “ “ “ “ “
Jim Beam “ “ “ “ “ “ “ “ “ “
3,966 4,857 4,079 1,529 1,659 1,791 2,093 2,559 4,897 4,813
Kirin
1,089 1,104 996 970 1,054 1,270 1,216 1,100 1,048 1,137
John Labbatt
2,456 2,202 1,762 1,507 1,467 1,540 1,583 1,384 1,364
Liggett & Myers “
Lion Nathan “ “ “ “ “ “ “ “ “ “
666 633 683 799 1,188 1,776 3,079 1,986 2,890 2,903
Miller Brewing (part of
Phillip Morris)
Modelo n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Mo¨ t & Chandon
e “ “ “ “ “ “ “ “ “ “
385 482 571 411 476 494 523 635 702 790
Mo¨ t Hennessy
e
Mo¨ t Hennessy LV
e “ “ “ “ “ “ “ “ “ “
1,016 1,138 1,292 1,247 1,313 1,487 1,403 1,248 1,320 1,358
Molson
Molson“Coors “ “ “ “ “ “ “ “ “ “
3,527 3,447 3,084 2,780 2,286 2,719 2,663 2,778 2,733 1,770
National Distillers
1,359 1,343 1,170 1,106 1,200 1,360 1,218 1,100 1,014 974
Pabst Brewing
4 4 5
Pernod n/a “ “ “ “ “ “
603 800 807 872 1,584 986
Pernod Ricard “ “ “ “
R´ my Cointreau
e “ “ “ “ “ “ “ “ “ “
San Miguel n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,281 1,472 1,484 1,086 1,166 1,068 1,303 1,559 1,482 1,393
Sapporo
2,078
Schenley n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,703 1,831 1,740 1,024
Schlitz Brewing n/a n/a n/a n/a n/a n/a
1,185 1,277 1,172 925 986 1,006 1,013 1,117 1,168 1,321
Scottish & Newcastle
4,955 4,771 4,198 3,660 3,503 3,730 3,676 3,400 3,299 3,294
Seagram




207
659 689 986 1,826 2,169 2,484 2,557 2,456 2,091 2,526
SABMiller / South African
Breweries
343 331
Stroh n/a n/a n/a n/a n/a n/a n/a n/a
1,458 1,850 2,140 1,985 2,141 2,542 3,035 3,910 3,605 3,469
Suntory
248
Truman “ “ “ “ “ “ “ “ “
Tsingtao n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,387
Watney Mann “ “ “ “ “ “ “ “ “
1,674 1,643 1,494 1,319 1,356 1,434 1,518 1,644 1,806 1,959
Whitbread

(continued)
Table a3.1 (Continued)

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990
Firm

1,085 1,107 1,384 1,447 1,646 1,489 1,373 1,451 1,310 1,309
Adolph Coors
5,317 5,065 4,995 4,842 5,234 5,479 6,005 7,187 7,041 7,410
Allied Domecq
Ambev “ “ “ “ “ “ “ “ “ “
4,488 5,534 7,523 8,303 8,993 8,691 7,730 9,257 9,815 10,242
Anheuser Busch
548 519 466 436
Arthur Bells “ “ “ “ “ “
230 229 814 801
Artois n/a n/a n/a n/a “ “
1,050 980 1,127 1,207 1,273 1,743 2,425 4,056 4,532 4,452
Asahi Breweries
283 265 295 318 380 421
Bacardi n/a n/a n/a n/a
4,016 3,930 3,757 3,826 3,975 4,497 5,337 6,336 6,303 6,987
Bass
859 969 1,089 1,000 924 862 917 928
Brauerei Beck n/a n/a




208
897 1,041 1,103 1,464 1,552 1,459 1,429 1,297 1,235 1,150
Brown Forman
1,223 1,255 1,457 1,441 1,498 1,822 1,983 2,052 1,946 2,158
Carlsberg
1,136 10 1,141 1,126 973
Companhia Antarctica n/a n/a n/a n/a n/a
Paulista
639 1,246 1,534 1,341 627 381
Companhia Cervejeira n/a n/a n/a n/a
Brahma
70 85 98 115 172 196 174 158 157 159
Constellation Brands /
Canandaigua
1,502 1,722
Courage “ “ “ “ “ “ “ “
Diageo “ “ “ “ “ “ “ “ “ “
2,441 2,289 2,130 1,926 2,100
Distillers Company “ “ “ “ “
926
E. & J. Gallo n/a n/a n/a n/a n/a n/a n/a n/a n/a
7,628 7,865 8,843 8,934 7,972 8,211 9,304 10,546 10,584 11,444
Fortune Brands / American
Brands
3,352 3,434 4,156 6,276 6,276 5,796 7,516 11,439 13,319 10,475
Foster™s Group / Foster™s
Brewing / Elders IXL
G. Heileman Brewing n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
7,551 8,129 8,445 8,621 9,216 8,780 9,478 10,230 14,520 14,713
Grand Metropolitan
2,123 2,030 1,649 1,569 1,958 5,396 4,681 4,710 4,804 5,499
Guinness
1,689 1,908 2,015 2,442 2,476 3,088 3,341 3,518 3,455 3,915
Heineken
2,392 2,584
Heublein n/a n/a n/a n/a “ “ “ “
2,823 3,292 3,441
Hiram Walker n/a n/a “ “ “ “ “
Holsten n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
International Distillers & “ “ “ “ “ “ “ “ “ “
Vintners
Inbev “ “ “ “ “ “ “ “ “ “
1,265 1,485
Interbrew “ “ “ “ “ “ “ “
Jim Beam “ “ “ “ “ “ “ “ “ “
5,210 5,056 5,615 6,193 6,522 8,208 8,900 8,774 8,695 8,636
Kirin




209
1,262 2,035 2,251 2,416 2,283 2,918 2,915 3,577 3,915 3,539
John Labbatt
Liggett & Myers “ “ “ “ “ “ “ “ “ “
Lion Nathan “ “ “ “ “ “ “ n/a n/a n/a
3,310 3,541 3,643 3,740 3,744 3,402 3,087 3,030 3,190 3,117
Miller Brewing (part of Phillip
Morris)
2,638 2,607 2,129
Modelo n/a n/a n/a n/a n/a n/a n/a
Mo¨ t & Chandon
e “ “ “ “ “ “ “ “ “ “
897 844 872 1,000 1,099 1,601 2,240
Mo¨ t Hennessy
e “ “ “
2,633 2,937 3,212
Mo¨ t Hennessy LV
e “ “ “ “ “ “ “
1,573 1,754 1,785 1,783 1,761 1,639 1,725 1,887 2,097 1,928
Molson
Molson“Coors “ “ “ “ “ “ “ “ “ “

(continued)
Table a3.1 (Continued)

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990
Firm

1,820 1,786 2,429 2,041 2,076 1,958
National Distillers “ “ “ “
947 917 997
Pabst Brewing “ “ “ “ “ “ “
Pernod “ “ “ “ “ “ “ “ “ “
1,382 1,340 1,238 1,216 1,218 1,924 1,810 1,870 2,138 2,727
Pernod Ricard
R´ my Cointreau
e “ “ “ “ “ “ “ “ “ “
San Miguel n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
1,748 1,688 1,901 2,107 2,239 3,019 3,381 3,761 3,328 3,127
Sapporo
Schenley n/a n/a n/a n/a n/a n/a “ “ “ “
Schlitz Brewing n/a n/a “ “ “ “ “ “ “ “
1,378 1,311 1,213 1,176 1,166 1,284 1,375 1,547 1,606 1,942
Scottish & Newcastle
3,235 3,417 1,826 3,381 3,624 3,363 3,400 3,639 4,826 4,923
Seagram




210
3,158 3,404 4,858 4,169 3,089 2,848 3,536 3,643 3,856 4,517
SABMiller / South African
Breweries
545 603 1,643
Stroh n/a n/a n/a n/a n/a n/a n/a
3,818 3,899 4,470 4,095 4,201 5,035 5,482 4,697 5,375 4,851
Suntory
Truman “ “ “ “ “ “ “ “ “ “
Tsingtao n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Watney Mann “ “ “ “ “ “ “ “ “ “
1,834 1,778 1,893 2,014 2,381 2,544 2,548 2,865 3,529 3,897
Whitbread
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Firm

1,365 1,370 1,477 1,508 1,381 1,454 1,636 1,918 2,118 2,414
Adolph Coors
8,074 8,226 7,528 7,827 7,871 6,994 6,541 6,603 6,286 3,842
Allied Domecq
2,706
Ambev “ “ “ “ “ “ “ “ “
9,483 9,627 10,321 10,548 9,804 10,537 11,523 10,538 11,263 12,499
Arthuser Busch
Arthur Bells “ “ “ “ “ “ “ “ “ “
Artois “ “ “ “ “ “ “ “ “ “
4,068 4,409 5,329 6,380 9,446 9,302 9,747 6,456 11,612 12,983
Asahi Breweries
405 2,221 2,367 2,800
Bacardi
6,895 6,610 6,181 6,140 5,800 6,252 7,204 7,831
Bass n/a “
1,051 711 793 931 874 795 832 802 811
Brauerei Beck n/a
1,216 1,303 1,522 1,447 1,366 1,497 1,638 1,772 1,913 2,146
Brown Forman
2,017 2,167 2,227 2,397 2,489 2,586 2,635 4,050 4,246 4,272
Carlsberg




211
284 314 667 392 1,253 1,142
Companhia Antarctica n/a n/a n/a “
Paulista
824 730 3,278 2,562 1,659 1,812 2,125 2,310 1,555
Companhia Cervejeira “
Brahma
157 214 284 567 740 824 1,019 1,122 1,418 2,162
Constellation Brands /
Canandaigua
Courage “ “ “ “ “ “ “ “ “ “
19,090 18,438 18,071 17,053
Diageo “ “ “ “ “ “
Distillers Company “ “ “ “ “ “ “ “ “ “
981 874 1,018 883 898 1,002 1,167 1,388 1,435 1,650
E. & J. Gallo
11,767 11,944 11,694 4,846 4,025 3,938 4,350 4,887 5,283 5,845
Fortune Brands / American
Brands

(continued)
Table a3.1 (Continued)

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Firm

7,387 6,657 4,089 3,339 1,657 1,853 2,869 1,946 1,835
Foster™s Group / Foster™s n/a
Brewing / Elders IXL
181 150
G. Heileman Brewing n/a n/a n/a “ “ “ “ “
13,761 12,145 11,276 10,730 10,343 11,566
Grand Metropolitan “ “ “ “
6,150 6,696 6,475 6,468 6,033 6,161
Guinness “ “ “ “
4,071 4,350 4,406 4,825 5,160 6,036 6,218 6,449 7,211 7,469
Heineken
Heublein “ “ “ “ “ “ “ “ “ “
Hiram Walker “ “ “ “ “ “ “ “ “ “




212
819 854 819 835 911 1,010
Holsten n/a n/a n/a n/a
International Distillers & “ “ “ “ “ “ “ “ “ “
Vintners
Inbev “ “ “ “ “ “ “ “ “ “
1,619 1,706 1,543 1,311 2,255 2,605 2,677 2,244 3,272 5,212
Interbrew
Jim Beam “ “ “ “ “ “ “ “ “ “
8,712 9,432 7,910 8,127 7,734 6,770 6,420 6,327 7,542 9,959
Kirin
3,706 2,776 1,532 1,532
John Labbatt “ “ “ “ “ “
Liggett & Myers “ “ “ “ “ “ “ “ “ “
491 495 421 435 456
Lion Nathan n/a n/a n/a n/a n/a
3,618 3,477 3,846 3,872 3,515 3,612 3,773 3,799 4,111 4,375
Miller Brewing (part of Phillip
Morris)
2,284 2,255 2,565 3,660 2,312 2,681 3,199 3,024 3,402 3,911
Modelo
Mo¨ t & Chandon
e “ “ “ “ “ “ “ “ “ “
Mo¨ t Hennessy
e “ “ “ “ “ “ “ “ “ “
3,484 3,578 3,894 4,539 4,872 5,082 7,390 7,138 8,623 10,670
Mo¨ t Hennessy LV
e
1,970 738 746 538 492 497 549 627 909 1,181
Molson
Molson“Coors “ “ “ “ “ “ “ “ “ “
National Distillers “ “ “ “ “ “ “ “ “ “
Pabst Brewing “ “ “ “ “ “ “ “ “ “
Pernod “ “ “ “ “ “ “ “ “ “
2,406 2,395 2,461 2,570 2,607 2,744 2,931 3,229 23,759 4,037
Pernod Ricard
1,037 1,106 954 1,035 1,099 1,110 1,102 1,188 651 674
R´ my Cointreau
e
1,771
San Miguel n/a n/a n/a n/a n/a n/a n/a n/a n/a
3,686 3,985 5,010 5,854 5,753 5,108 4,891 4,283 4,763 5,234
Sapporo
Schenley “ “ “ “ “ “ “ “ “ “
Schlitz Brewing “ “ “ “ “ “ “ “ “ “
2,168 2,282 2,222 2,482 2,605 3,903 4,985 5,201 5,100 5,419
Scottish & Newcastle
5,465 5,549 5,649 5,441 5,226 8,137 11,279 8,769 11,658 15,686
Seagram




213
5,208 5,335 6,171 6,128 6,280 6,330 5,635 5,425 5,636 4,806
SABMiller / South African
Breweries
Stroh n/a n/a n/a n/a n/a n/a n/a n/a “ “
5,298 5,238 6,139 6,465 6,351 5,682 5,863 5,760 6,934 7,879
Suntory
Truman “ “ “ “ “ “ “ “ “ “
1,255 1,479 2,131 3,760
Tsingtao n/a n/a n/a n/a n/a n/a
Watney Mann “ “ “ “ “ “ “ “ “ “
3,536 3,650 4,635 5,926 5,547 5,636 6,176 6,292 6,652 6,619
Whitbread

(continued)
Table a3.1 (Continued)
2001 2002 2003 2004 2005
Firm

2,494 3,856 3,664 3,618
Adolph Coors “
4,138 4,980 4,961 4,967
Allied Domecq “
Ambev n/a n/a n/a “ “
13,256 13,853 12,958 12,547 12,069
Anheuser Busch
Arthur Bells “ “ “ “ “
Artois “ “ “ “ “
12,109 11,200 11,064 11,215 10,414
Asahi Breweries
2,772 2,961 2,840 2,521 2,632
Bacardi
Bass “ “ “ “ “
Brauerei Beck “ “ “ “ “
2,253 2,270 2,176 2,165 2,191
Brown Forman
4,246 4,597 4,815 5,047 5,092
Carlsberg
Companhia Antarctica Paulista “ “ “ “ “
Companhia Cervejeira Brahma “ “ “ “ “




214
2,285 2,662 2,502 2,985 3,281
Constellation Brands / Canandaigua
Courage “ “ “ “ “
17,894 16,681 13,880 13,677 14,506
Diageo
Distillers Company “ “ “ “ “
1,202 1,146 1,030 1,308 1,366
E. & J. Gallo
5,708 5,798 5,692 5,163 5,668
Fortune Brands / American Brands
2,166 2,536 2,755 2,415 2,436
Foster™s Group / Foster™s Brewing / Elders IXL
G. Heileman Brewing “ “ “ “ “
Grand Metropolitan “ “ “ “ “
Guinness “ “ “ “ “
7,016 8,151 9,568 10,438 10,778
Heineken
Heublein “ “ “ “ “
Hiram Walker “ “ “ “ “
747 801 777 544
Holsten “
International Distillers & Vintners “ “ “ “ “
8,938 11,637
Inbev “ “ “
Interbrew n/a n/a n/a “ “
Jim Beam “ “ “ “ “
9,298 9,262 9,211 9,505 8,992
Kirin
John Labbatt “ “ “ “ “
Liggett & Myers “ “ “ “ “
661 785 943 1,025 993
Lion Nathan
2,715
Miller Brewing (part of Phillip Morris) n/a “ “ “
4,416 4,143 3,585 3,454 3,650
Modelo
Mo¨ t & Chandon
e “ “ “ “ “
Mo¨ t Hennessy
e “ “ “ “ “
11,235 12,198 12,366 13,169 13,887
Mo¨ t Hennessy LV
e
1,231 1,368 1,644 1,631
Molson “
3,618 4,420
Molson“Coors “ “ “
National Distillers “ “ “ “ “
Pabst Brewing “ “ “ “ “
Pernod “ “ “ “ “
4,185 4,647 3,693 3,702 3,668
Pernod Ricard




215
735 980 1,034 927 797
R´ my Cointreau
e
2,416 2,590 2,442 2,633 3,579
San Miguel
4,708 4,167 3,789 4,033 4,100
Sapporo
Schenley “ “ “ “ “
Schlitz Brewing “ “ “ “ “
6,435 6,426 7,457 4,946 5,233
Scottish & Newcastle
Seagram “ “ “ “ “
4,296 4,456 7,481 9,549 10,355
SABMiller / South African Breweries
Stroh “ “ “ “ “
6,326 5,926 5,475 5,147
Suntory n/a
Truman “ “ “ “ “
4,846 6,321
Tsingtao n/a n/a n/a
Watney Mann “ “ “ “ “
Whitbread “ “ “ “ “

Note: Amounts stated in millions of constant U.S. dollars (2000 = 100).
Appendix 4

Selection of the Sample




The sample of ¬rms selected for this study relied on several benchmark dates:
1960, 1970, 1980, 1990, 2000, and 2005. The use of multiple benchmark
dates avoids possible bias that could occur if only one of the dates had been
selected. For example, if only 2005 had been considered, ¬rms that were
important in the 1960s or after but which had not remained in the ranking
of the world™s largest ¬rms until the beginning of the twenty-¬rst century
would have been eliminated from this study, either because they had not
survived or because they had not kept a pace of growth that allowed them to
remain in the of¬cial rankings of the largest industrials such as Fortune 500.
In the same way, if 1960 had been chosen as the only benchmark date, ¬rms
that had emerged as the largest at the end of the period of analysis would
not have been included.1
Several possible economic criteria could have been used in the selection
of the ¬rms to be included in this study. Value added, assets, market capital-
ization, and sales are just some examples of alternative measures. Although
these measures might be equivalent in the long run, they offer valid but
distinct perspectives on the performance of ¬rms, each one with its own
advantages and drawbacks.2
Value added would have been the ideal measure for the performance
of ¬rms. It would have illustrated, for example, that wine ¬rms generate
less value added than spirits and beer ¬rms because of their less powerful
brands and higher production and inventory holding costs (such as labor and

1 This last kind of distortion occurs in Raymond Vernon™s study on U.S. foreign direct invest-
ment between 1900 and 1967, in which he looked at only the largest ¬rms at the end of
the period and traced them back. Raymond Vernon, “International Investment and Interna-
tional Trade in the Product Cycle,” Quarterly Journal of Economics, Vol. 80 (1966): 190“
207; idem, Sovereignty at Bay: the Multinational Spread of United States Enterprises (New
York: Basic Books, 1971). For a critique and alternative approach, see Geoffrey Jones and
Frances Bostock, “US Multinationals in British Manufacturing Before 1962,” Business His-
tory Review, Vol. 70 (1996): 211“12.
2 Leslie Hannah and John Kay, Concentration in Modern Industry (London: Macmillan, 1976):
42“43; John Kay, Foundations of Corporate Success (Oxford: Oxford University Press, 1993):
chapter 13.



216
217
Appendix 4
investments in aging the wine). However, owing to the lack of availability of
information, value added could not be used as a selection criterion.
Assets are another possible measure that was not selected for two main
reasons. First, it is highly sensitive to in¬‚ation. Second, because ¬rms do not
always use the same criteria in accounting for assets, it is dif¬cult to recon-
struct the balance sheets in such a way as to have comparable information
between ¬rms.
Market capitalization is also frequently considered an appropriate indi-
cator for measuring the size of ¬rms, as it re¬‚ects the expectations on their
present and future pro¬tability irrespective of their origin. Again, this was
also not used in this study because ¬rms often only became publicly quoted
in the last decades of the twentieth century (and for that reason it was not
possible to obtain information about each ¬rm covering the period starting
in the beginning of the 1960s).3 As a result of the problems presented by
these alternative measures, turnover (sales), the most widely used indicator
of performance, was the measure selected to assess the performance and in
particular the evolution in the size of ¬rms in this industry.4

3 For example Anheuser Busch, a family owned and controlled ¬rm, became publicly quoted
in 1990.
4 For a discussion of alternative measures of performance see e.g. John H. Dunning and Robert
Pearce, The World™s Largest Industrial Enterprises (Guildford: Gower, 1981).
Appendix 5

Biographies of the World™s Largest
Multinationals in Alcoholic Beverages


This Appendix contains brief biographies of the world™s largest multination-
als in alcoholic beverages at the beginning of the twenty-¬rst century. In
complex cases the historical evolution is illustrated by a graph.

Allied Domecq (See Figure A5.1) Allied Breweries was founded in 1961
through the merger of three major U.K. brewers “ Ind. Coope, Tetley Walker,
and Ansells Brewery “ to produce and distribute three brands of beer (Double
Diamond, Skol, and Long Life) as well as wines and spirits, thus becoming
Britain™s second largest brewer. In 1968, it acquired Showerings, a wine and
cider company, owner of Babycham, which had also acquired Harveys of
Bristol in 1966. Since then, Allied Breweries grew rapidly, essentially through
international mergers and acquisitions. Two major examples are the acqui-
sition of Hiram Walker from Canada in 1986, and in 1994, Pedro Domecq,
the leading Spanish spirits and sherry ¬rm that also had a prominent posi-
tion in South America. Over time, Allied Domecq divested its nonalcoholic
beverages and beer business. By the beginning of the twenty-¬rst century,
this multinational was pursuing a strategy of concentration in the spirits
and branded wines businesses. It owned a number of top spirits brands such
as Ballantines, Beefeater, Courvoisier, Hiram Walker, Kahlua, Sauza, and
Malibu. In 2005, Allied Domecq was acquired by Pernod Ricard. Fortune
Brands bought some of Allied Domecq™s brands from Pernod Ricard.

Anheuser-Busch is the owner of the world™s top-selling beer brand Budweiser.
Founded in 1852, this ¬rm owes its early growth to sales in the United
States. In the late 1990s, this family ¬rm started investing in foreign markets,
especially in Asia and South America. In Asia it formed a licensing agreement
with Kirin in 1993 to distribute Budweiser in Japan. It also invested in China,
Argentina, and Brazil, as well as in the United Kingdom. In 1998, it made
a major investment in South America with the acquisition of 50 percent of
Mexico™s Grupo Modelo, producer of the beer brand Corona.

Asahi Breweries is a Japanese ¬rm, founded in 1889, whose present success
is attributable to its ¬‚agship brand, Asahi Super Dry, developed in 1987.


218
Allied Domecq

1970 1980 1990 2000 2005
1960


• Allied Breweries
- Ind. Coope (1799)
1961
- Tetley Walker (1822)
2005
- Ansells Brewery (1881) 1968

• Showerings, Vine Products & Whiteways
- Showerings (1932)
1961
- Vine Products (1926)
- Whiteways Cyder Co (1890s)




219
1966
• Harveys of Bristol (1871)
1975
• Teachers (1830)
1978
• J. Lyons
1986
• Hiram Walker (1926)
- Hiram Walker & Sons (1856)
- Gooderham and Worts (1832)
1994
• Pedro Domecq (1730)

• Pernod Ricard (1975)
Fig. A5.1. Allied Domecq and its main predecessors
220 Global Brands
Since then, the ¬rm™s rate of growth has increased, leading Asahi Breweries
in 2001 to surpass Kirin™s market share in Japan. Despite being relatively
diversi¬ed, Asahi Breweries™ recent investments have targeted all ¬elds in
alcoholic beverages. It has brewing and distribution agreements with several
Western alcoholic beverages ¬rms such as Bass Brewers, Miller Brewing, and
Molson, and also with wines and spirits ¬rms.

Bacardi was founded in 1862 in Cuba. It developed essentially from sales
to the U.S. market after the repeal of Prohibition, and from sales of a single
product, Bacardi Rum. As a result of the 1959 revolution in Cuba, the family
was forced into exile in the United States. In 1993, in an effort to diversify,
the company bought a majority stake in Martini Rossi. During the following
years, the ¬rm made investments in creating line and brand extensions out
of its restricted portfolio of brands. In 1998, it made further investments
in widening its portfolio, acquiring Dewar™s Scotch Whisky and Bombay
Sapphire gin from Diageo. It is now one of the world™s leading spirits ¬rms,
with a more restricted portfolio of successful and global brands.

Brown Forman is a family ¬rm founded in 1870. At the beginning of the
twenty-¬rst century, it was a leading U.S. producer of spirits and wines, hav-
ing as its major brand the famous bourbon Jack Daniel™s. It is one of the few
U.S. ¬rms that during Prohibition, was allowed to produce spirits that were
consumed for medical purposes. Beginning in the 1960s, the ¬rm started
merging and acquiring other spirits and wines ¬rms in order to expand its
portfolio of brands sold in the U.S. market and also to expand geograph-
ically. Some of the ¬rms it acquired were Korbel (champagne and brandy)
in 1965, Canadian Mist in 1971, and Southern Comfort in 1979. In the
1990s, it made strategic acquisitions in wines, including two producers of
premium-quality California wines “ Jekel Vineyards and Fetzer Vineyards “
in, respectively, 1991 and 1992. It also acquired a producer of Chilean wines,
Carmel vineyards, in 1993. The company began its transformation into a
global player in 1994, when its domestic and international spirits companies
and its wine group were merged into Brown Forman Beverages Worldwide.
In 2000, it formed a global alliance with Altia Group Ltd., owner of Finlan-
dia vodka, to market and distribute the brand internationally. In 2004 Brown
Forman acquired Altia™s share in the alliance, becoming the sole marketer of
the brand worldwide.

Carlsberg is a Danish brewery founded in 1847. By the beginning of the
twenty-¬rst century, Carlsberg was owned by a foundation (created by
its founder). It is a leading international producer of beer, especially with
the brands Carlsberg and Tuborg. Tuborg, Carlsberg™s major competitor
in Denmark, was acquired in 1970. It produced beer in more than 100
countries through either wholly owned investments or through alliances
221
Appendix 5
(in particular licensing agreements). Its portfolio of regional brands includes
Pripps (Sweden), Holsten (Germany), Tetley™s (UK), Koff (Finland), Okocim
¨
(Poland), and Feldscholosschen (Switzerland).

Constellation Brands, formerly Canandaigua, is a family ¬rm founded in
1945 in the United States to produce and sell wines. The ¬rm expanded
by buying a number of wineries in the 1960s and 1970s. It went public in
1973. By the beginning of the twenty-¬rst century, it was a leading producer
and marketer of wines from Australia and New Zealand, and a major pro-
ducer and independent drinks wholesaler in the United Kingdom. Through
its subsidiaries, this ¬rm also sells imported beer brands such as Corona and
Tsingtao in the U.S. market. It also produces and imports spirits such as
Black Velvet Canadian whiskey and Barton™s Blue Wave.

Diageo was formed in 1997 as a result of the merger between Guinness and
Grand Metropolitan, which made it the world™s largest multinational in alco-
holic beverages (See Figure A5.2). The complex history of mergers and acqui-
sitions of Guinness and Diageo explains why it owns many of the top spirits
brands such as Smirnoff, Johnnie Walker Red , J&B Rare, Gordon™s, and Bai-
leys Irish Cream. Among its predecessors are leading ¬rms that were some of
the world™s largest industrials, for example, Distillers Company, Liggett &
Myers, Heublein, and Schenley. In 2001, Diageo formed an alliance with
Pernod Ricard to buy Seagram™s brands. This alliance enabled the ¬rm
to enlarge its portfolio even further. Since then, it has acquired branded
wines such as the U.S. Chalone Wine Group and Bushmills Irish whiskey
in 2005.

E. & J. Gallo is the world™s largest producer of wines. Since its foundation in
1933, this Californian family ¬rm essentially invested in branded standard
wines. It mainly sells in the United States, where it has a very effective national
distribution network.

Fortune Brands was founded in 1864 as a small tobacco company named
American Tobacco Company. In 1966, this ¬rm entered the alcoholic bev-
erages business, acquiring Jim Beam Distillery (the same year it changed
its name to American Brands). Since then, it has diversi¬ed into other unre-
lated businesses. In 1990, however, it started to focus on alcoholic beverages,
acquiring Whyte & Mackay distillers and seven liquor brands from Seagram.
In 1994, the ¬rm sold its tobacco business, and changed its name to Fortune
Brands. In 1999, it formed Maxxium Worldwide, a non-U.S. wines and spir-
its sales and distribution joint venture with R´ my Cointreau and Highland
e
Distillers. In addition to the companies™ own brands, this joint venture also
distributes Absolut vodka, owned by the Swedish monopoly Vin & Sprit.
In 2005, it bought some of Allied Domecq™s brands (Courvoisier cognac,
Diageo

1970 1980 1990 2000 2005
1960
Grand Met
• Grand Metropolitan (1962)
1982
• Watney Mann (1958) 1987 1992
- Watney Combe Reid (1898) 1972
- Mann, Crossman & Paulin
• International Distillers and Vintners
• Gilbeys (1857) IDV
1962
• United Wine Traders (1952)
- Justerini & Brooks (1749)
- Twiss & Brownings & Hallowes (1814) Diageo
1997
- Corney & Barrow




222
• Liggett Group (1873)
• Heublein (1875)

Guinness
• Guinness (1759)
1985
• Arthur Bells (1862)
1986
• Distillers Company Distillers (1877)
1970
• Pimms
• Hine Cognac
1987
• Schenley (1920)

2001
• Seagram (wines & spirits 62%)
2005
• Bushmills Irish Whiskey (1608)
Fig. A5.2. Diageo and its main predecessors
223
Appendix 5
Canadian Club, Maker™s Mark, and Sauza) after its acquisition by Pernod
Ricard.

Foster™s is a leading Australian brewer that in recent years also made signif-
icant investments into the wines business. Having operated since 1888, this
¬rm had a complex early start, involving several mergers and acquisitions
that led to the creation of Foster brewery. In 1907, the Foster Company
joined an amalgamation of six Melbourne breweries to form Carlton and
United Breweries. In 1983, the conglomerate Elders IXL acquired Carlton
and United Breweries, establishing Elders IXL as one of Australia™s largest
companies. Since then, this Australian ¬rm expanded not only in the domes-
tic market but also internationally, acquiring for example the British brewer
Courage in 1986, and the brewing interests of Grand Metropolitan in 1991
(both businesses sold to Scottish & Newcastle in 1995). In 1990, Elders IXL
was renamed Foster™s Brewing Group. It entered into the wines business by
acquiring the Australian wine ¬rms Mildara Blass and Rothbury Wines in,
respectively, 1995 and 1996. Despite selling its brands in many countries,
over 70 percent of Foster™s Brewing sales are generated in the Australian
market.

Heineken, a Dutch family ¬rm, is a very internationalized brewer, own-
ing the famous brands Heineken and Amstel, which are sold in more than
170 countries. Founded in 1864, this ¬rm internationalized very early. The
United States has been historically an important market, not only because of
the level of sales it generated, but also due to the role it played in the creation
of Heineken™s brand image. The U.S.-owned distributor Van Munching con-
tributed greatly to this success. Amstel, Heineken™s second beer brand, was
traditionally the major competitor in the Dutch market. It was acquired in
1968. Since then, Heineken has continued expanding internationally, making
several important acquisitions and alliances of brewers, owners of successful
brands such as Cruz Campo in Spain, Warka in Poland, and Moretti in Italy.

Inbev is the result of the combination of two leading multinationals “ Ambev
from Brazil and Interbrew from Belgium (See Figure A5.3). Ambev “ Com-
panhia de Bebidas das Am´ ricas “ was formed in 2000 as a result of the
e
merger between the two leading Brazilian brewers, Companhia Antarctica
Paulista and Companhia Cervejeira Brahma, both ¬rms dating back to the
nineteenth century and producing leading Brazilian beer brands like Brahma
and Antarctica. Since 2000, it started internationalizing mainly in South
America, through exports and also foreign direct investment. In 2001, Ambev
bought controlling interest in two Uruguayan brewers, Salus and Cerveceria
y Malteria Pay, and acquired Ceveceria Internacional in Paraguay. In 2002,
it acquired a 36 percent voting stake in Quilmes, Argentina™s top brewer.
Ambev also has several licensing agreements to produce foreign beers in
Brazil.
Inbev
1970 1980 1990 2000 2005
1960

Interbrew
• Interbrew (1988)
- Artois (1366/1717) 1988
- Piedboeuf-Interbrew (1853)
1995
• John Labbatt (1847)




224
2000
• Bass (1777)
2001 Inbev
• Whitbread (1742)
2001 2004
• Brauerei Beck (1873)
Ambev
• Ambev
- Companhia Antarctica Paulista (1885) 2000
- Companhia Cervejeira Brahma (1888)
Fig. A5.3. Inbev and its main predecessors
225
Appendix 5
Interbrew was formed in Belgium in 1988 as a result of the merger of the
two long-established leading family ¬rms, Piedboeuf-Interbrew and Artois.
Its major acquisitions include the Canadian brewer, John Labbatt in 1995,
and in 2000 the two leading British brewers, Whitbread and Bass. Owing to
the concentration that these two acquisitions created in the United Kingdom
brewing industry, the U.K. Competition Commission forced the ¬rm to sell
its beer brand Carling, which was acquired by Coors in 2002.

Kirin is a Japanese brewer founded in 1907. Part of the Mitsubishi Keiretsu,
Kirin has been the leading brewer in terms of market share in the Japanese
market since the 1950s, only being challenged by Asahi Breweries in 2001.
In 1972, Kirin entered the spirits business through its joint venture with
Seagram. In the 1990s, it acquired wines businesses. To compensate for the
stagnation of sales in the Japanese market, Kirin concluded several distribu-
tion agreements, including one with Anheuser-Busch. It also acquired foreign
brewers, including the Australian ¬rm Lion Nathan in 1998 and the Philip-
pines food and drink giant San Miguel.

Mo¨ t-Hennessy Louis Vuitton was formed in 1987 as a result of the merger
e
between the champagne and cognac group, Mo¨ t Hennessy and the luggage
e
and luxury products ¬rm Louis Vuitton, thus becoming the world™s leading
champagne and cognac producer (See Figure A5.4). To manage this new
group, the families that owned the merging ¬rms hired a professional man-
ager, Bernard Arnault, who, soon after taking control of the management,
also became the ¬rm™s major shareholder. Since then, the ¬rm has made sev-
eral mergers and acquisitions, but these were mainly in the fashion and lux-
ury products businesses. In 1987, however, it made a landmark arrangement
with Guinness, through which the two multinationals distributed jointly
their complementary brands worldwide.

Molson Coors is a leading multinational, the result of the 2004 merger
between Coors from the United States and Molson from Canada. Coors was
a leading family-owned brewer, founded in 1873. Although it was active
essentially in the U.S. market, it also exported to more than thirty countries
and formed alliances with direct competitors. The agreements with Mol-
son Breweries and Foster™s Brewing in 1997 to manage the distribution of its
brands in Canada are examples. In 2002, Coors also bought the British brand
Carling from Interbrew (later part of Inbev). Molson was a Canadian ¬rm
whose ownership changed substantially after 1960. Founded in 1876, this
¬rm merged with the Canadian subsidiary of the Australian conglomerate
Elders IXL in 1988. In 1993, the Canadian family who originally owned Mol-
son bought back control of the shares, and since 1998 has become the only
large Canadian-owned brewer. In this process, Molson internationalized, in
Mo«t-Hennessy Louis Vuitton

1970 1980 1990 2000 2005
1960


Mo«t-Hennessy
• Mo«t & Chandon (1743)
1970




226
• Mercier (1859)
1971 1975
• Hennessy (1765)
1987
• Ruinart (1729)

(1854)
Louis Vuitton
Fig. A5.4. Mo¨ t-Hennessy Louis Vuitton and its main predecessors
e
227
Appendix 5
particular to South America. The merger led to the creation of a leading
family-owned multinational brewer.

Pabst is a successor company of Best Brewing Company of Milwaukee,
founded in 1844 by Jacob Best. In 1889 the ¬rm changed its name to
Pabst Brewing Company, and by the beginning of the twentieth century,
was a leading U.S. beer brand. In 1985, after a period of decline, the
¬rm was acquired by S&P. In an attempt to counter its loss of market
share, Pabst closed plants and transferred production to Miller and Stroh.
In 1999, S&P acquired several breweries, including Stroh Brewing Com-
pany. However, this acquisition did not signi¬cantly improve the pro¬tability
of the ¬rm. In 2001, Pabst abandoned all its production facilities, becom-
ing a “virtual” brewer, contracting with other brewers such as Miller and
Lion Brewery to brew the beers while retaining ownership of its brands,
Pabst Blue Ribbon, Lone Star, Old Milwaukee, Old Style, Schlitz, and
Colt D45.

Pernod Ricard was formed in 1975 as a result of the merger between two
family ¬rms, Pernod and Ricard (See Figure A5.5). World leader in anis
pastis, this ¬rm also owns other wines and top spirits brands such as Wild
Turkey bourbon. Since its formation, it has made several important inter-
national mergers and acquisitions, including Austin Nichols (Wild Turkey)
acquired from Liggett & Myers in 1980. In 2001, in a joint agreement with
Diageo it purchased Seagram™s brands, adding to its portfolio top spirits
such as Chivas Regal and Glenlivet. These brands improved Pernod Ricard™s
presence in North America. In 2005, it acquired Allied Domecq, becoming
the second largest spirits and wines ¬rm in the world. These acquisitions
added Beefeater gin, Ballantines whisky, Kahlua, Malibu rum, Stolichnaya
vodka, and Tia Maria to Pernod Ricard™s portfolio. The acquisition of Allied
Domecq also gave Pernod Ricard a major foothold in the British market.

R´ my Cointreau was formed in 1991 as a result of a merger between two
e
long-established French family ¬rms, R´ my Martin and Cointreau. In 1999,
e
it formed Maxxium, a joint venture with Brown Forman (United States),
Highland Distillers (United Kingdom), and Vin & Sprit (Sweden) to jointly
distribute its beverages worldwide. In 2000, R´ my Cointreau acquired the
e
Dutch spirits group, Bols, and also expanded its distribution capacity in
Central and Eastern Europe.

SABMiller. South African Breweries (SAB) was incorporated in 1895, selling
beer to workers in the new mining town of Johannesburg. In 1956, it acquired
its two major competitors in the South African market, becoming almost a
monopoly there and clearly the dominant beverages company in the coun-
try. After 1956, the ¬rm made no major acquisitions either in the domestic
Pernod Ricard

1960 1970 1980 1990 2000 2005


• Pernod (1805)
• Ricard (1932) 1975




228
- Campbell Distillers
1980
- Austin Nichols
1988
- Irish Distillers
1995
- Seagram (Wines & Spirits 38%) (1924)
2005
- Allied Domecq (1961)
Fig. A5.5. Pernod Ricard and its main predecessors
229
Appendix 5
market or abroad, in part because of restrictions imposed by the South
African government. With the abolition of apartheid in 1994, SAB started
investing in foreign markets. Ventures were launched in Tanzania, Zambia,
Mozambique, and Angola. In May 2002, SAB acquired Miller Brewing
from the tobacco group Philip Morris and changed its name to SABMiller.
With this acquisition, South African Breweries became a major multinational
brewer. Miller was a U.S. brewer founded in 1855 and acquired by Philip
Morris in 1970. It merged with or acquired other U.S. brewers such as Stroh
(which also owned G. Heileman Brewing), Schlitz, and Pabst. By the 1990s,
it held the second largest market share in the United States. In May 2002,
South African Breweries acquired a 64 percent equity stake in the Company,
the remainder continuing to be held by Philip Morris. After the 2002 acquisi-
tion SABMiller has a wide portfolio of beer brands including Castle, Pilsner
Urquell, and Miller.

San Miguel, which was founded in 1890 as a brewer, developed into the
largest beverage and food ¬rm in the Philippines. By the beginning of the
twenty-¬rst century, it controlled the beer market in the Philippines. In 2001,
it allied with the Japanese brewer Kirin, giving the latter 15 percent of San
Miguel™s shares.

Sapporo is Japan™s oldest brewer, having been founded in 1876. In the
beginning of the twenty-¬rst century, it was the number three brewer in the
Japanese market after Asahi Breweries and Kirin. Selling essentially in Japan,
it has other alcoholic beverages businesses besides beer, with the importation
of wines being particularly important.

Scottish & Newcastle, currently the leading British brewer, was formed in
1960 as a result of the amalgamation of several brewers, its oldest predeces-
sor having been founded in Edinburgh in 1749. In 1995, it acquired Courage,
which was founded in London in 1787, an addition that made the company
the largest U.K. brewer. Since 2000 it started internationalizing, making
important foreign investments, such as Kronenbourg in France and Central
de Cervejas in Portugal, and by forming strategic alliances, such as Baltic
Beverages Holding in Russia with Carlsberg.

Seagram, a Canadian family ¬rm that produced spirits, was founded in 1924,
and relied on sales of Canadian whiskey to the U.S. (See Figure A5.6) mar-
ket. Over the years, this ¬rm became one of the leading multinationals in
alcoholic beverages, owner of successful global brands like Chivas Regal, 7
Crown, Crown Royal, Captain Morgan, and Seagram™s. In the 1990s, Sea-
gram began emphasizing its investments in entertainment at the expense of
its alcoholic beverages. In 2001, Seagram was sold by the family to Vivendi,
the French media and water group, which subsequently sold the alcoholic
Seagram

1980
1960 1970 1990 2000 2005


Seagram




230
• Distillers Corporation (1924)
- Joseph E. Seagram (1857) 1987
• Martell (1715) 2001


Vivendi
Fig. A5.6. Seagram and its main predecessors
231
Appendix 5
beverages brands to Diageo and Pernod Ricard. These two ¬rms kept the
most important brands and sold the rest.

Suntory is a family ¬rm formed in Japan in 1899 that grew out of its pro-
duction of red wine and Japanese whiskey. Selling essentially in the Japanese
market, Suntory also produces beer, but that is not a very signi¬cant part
of its activity. The ¬rm has multiple alliances with leading Western multina-
tionals, which have played a very important role in the growth of the ¬rm
within the Japanese spirits and wines business.

Tsingtao is China™s largest brewer. Founded in 1903 by German settlers, it
was later occupied by the Japanese, and was ¬nally retaken by the Chinese
government. In 2005, the Chinese government remained the major share-
holder, and Anheuser-Busch was the largest nongovernment shareholder.
Appendix 6

Types of Governance Structures
in Distribution, 1900“2005


There were multiple governance structures used by ¬rms to distribute alco-
holic beverages from the beginning of the twentieth century until the present
day. At different times some were more important than others. Using four
periods “ 1900“1960; 1961“1970; 1971“1990; 1991“2000, 2001“2005 “
Table a6.1 summarizes which were the largest alcoholic beverages ¬rms in
the world, the predominant geographical scope of their operations and the
main governance structures used for distributing alcoholic beverages. When
a particular type of governance structure is very common in a speci¬c period,
it is represented by (++), when it is common but not a predominant gov-
ernance structure, it is symbolized by a (+), and when it is not used it is
classi¬ed with a (0). The bottom row in the table highlights the main types
of governance structures used by the world™s largest ¬rms in each of the ¬ve
periods.
The period 1900“1960 is included in this analysis to help explain the rapid
pace of change that occurred in international distribution from the 1960s.
The benchmark dates used (1960, 1970, 1990, 2000) correspond to periods
of change. In each of these periods there were important technological inno-
vations and changes in the strategic role of brands in the growth of ¬rms
globally.1
Figure a6.1 positions the alternatives means of distribution of alcoholic
beverages from 1900 to 2005 along two axes. The vertical axis takes into
consideration the level of control of the markets and of the information
by the ¬rm. The horizontal axis measures the level of resources invested in
each type of alliance. This ¬gure takes into consideration situations where
products are distributed from producers to wholesalers and from producers
to retailers.
According to the literature on distribution channels, it is possible to iden-
tify eight principal types of channels used in the distribution of alcoholic bev-
erages during the period 1900“2005: networks of merchant houses, agents,
distributors, direct sale, employees working in the market of destination;
wholly owned channels; channel-alliances; and e-commerce.

<<

. 8
( 11)



>>