Financial Insights
No Result
View All Result
  • Home
  • World
  • Opinion
  • Economy
  • Business
  • Culture
  • Politics
  • Lifestyle

    Trending Tags

    • COVID-19
    • Donald Trump
    • Pandemic
    • Bill Gates
    • Corona Virus
  • Tech
SUBSCRIBE
  • Home
  • World
  • Opinion
  • Economy
  • Business
  • Culture
  • Politics
  • Lifestyle

    Trending Tags

    • COVID-19
    • Donald Trump
    • Pandemic
    • Bill Gates
    • Corona Virus
  • Tech
No Result
View All Result
Financial Insights
No Result
View All Result
Home FI Beverage

Budweiser lacks taste for Chibuku 2017

Founder Fi by Founder Fi
December 3, 2017
Reading Time: 2 mins read
0

On 16th May 2017, shareholders of National Breweries were issued with a cautionary note relating to circumstances relating to NatBrew. A further cautionary note was issued on 17 th of May which indicated that the maker of global brands Budweiser, Corona and Stella Artois (Anheuser-BuschInBev SA/NV) was undertaking a review of its strategic options relating to its investment in NatBrew, including a possible sale of its effective 70% shareholding in NatBrew.

RELATED POSTS

ZAMBREW – NOTICE OF AGM

ZAMBREW – TRADING STATEMENT

ZAMBREW – NEWS RELEASE

National Breweries which is a subsidiary of SABMIller plc looks certain not to make the cut in the lineup of beverage companies that AB InBev owns. According to Wikipedia, the company was enlarged in October 2016 when AB InBev purchased SABMiller and concluded a merger of the two entities. AB InBev is the world’s largest brewer even before the acquisition of SABMiller and is considered one of the largest fast-moving consumer goods (FMCG) companies in the world. Sadly however, Chibuku might not be joining those ranks.

We will not speculate as to why InBev would consider not taking on Chibuku. A look at its 2016 annual report shows that bulk beer maker was steadily increasing turnover year on year. For example from 2015 to 2016 revenue increased by 15% with shareholder funds increasing by 12% in the same period. However, operating profit has been eroding over the last 3 years largely due to macro forces and competition in the sector. Could this be the reason for dumping Chibuku? Hard to say. However, judging by NatBrew Managing Director Annabella Degroot’s statement to shareholders on the completion of their new plant indicating renewed installed capacity, whoever lands this asset will make the most of its profitability potential.

There are many reasons a legacy player such as AB InBev would not buy Chibuku. For instance, an audit of its portfolio of beverages shows that it does not have a single opaque beer in its roster. Extant knowledge is key in this game. Conversely, observers in the market would have expected InBev to add Chibuku to its category of local champions (InBev classifies its brands in the following categories Global Brands,International Brands, and Local Champions). For now, we can only wait as Deborah Bwalya NatBrew’s Company Secretary indicates that the impact of the strategic review cannot yet be ascertained, and shareholders will be updated as required pursuant to Zambian law.

Buy JNews
ADVERTISEMENT

Sharing is caring!

  • Facebook
  • Twitter
  • LinkedIn
Tags: National Breweries PlcZambian Breweries Plc
ShareTweetPin
Founder Fi

Founder Fi

Related Posts

ZAMBREW – TRADING STATEMENT
Zambian Breweries

ZAMBREW – NOTICE OF AGM

March 7, 2023
ZAMBREW – TRADING STATEMENT
Finance

ZAMBREW – TRADING STATEMENT

March 7, 2023
Zambian Breweries

ZAMBREW – NEWS RELEASE

November 30, 2022
Beverage

ZAMBREW – NEWS RELEASE

November 25, 2022
Economy

ZAMBREW – NEWS RELEASE

November 23, 2022
Beverage

NATBREW – HALF YEAR TRADING STATEMENT AND ABRIDGED FINANCIALS

November 18, 2022
Next Post

Project Ekaris: The Rise of the Stock broker

Investrust Bank: Negative Earnings but still in transition

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended Stories

Daily FiZ – Monday 29/11

November 29, 2021

Capital Markets fund FISP; Minister of Finance

September 27, 2020

Daily FiZ – Thursday 25/03

March 25, 2021

Popular Stories

    About Us

    The Financial Insights of Zambia was established in 2017 as a follow up to the success of The Financial Health of Zambia’s Premier Companies blog which was birthed as an idea that would address the challenge Zambian investors had in understanding how companies within the economy created value. Armed with the annual reports of companies listed on the Lusaka Stock Exchange, we bring business analysis and valuation of these premier companies.

    What’s New Here!

    • Daily FiZ – Thursday 31/05
    • Zamtel celebrates PremierCredit Partnership and extends its investment product offering onto Zamtel Mobile Money menu.
    • Daily FiZ – Wednesday 31/05
    • ZAMTEL LAUNCHES THE PREMIERINVEST PRODUCT ON ITS MOBILE MONEY MENU
    • WWF Zambia’s Position on the Proposed Mining in Lower Zambezi National Park
    • Daily FiZ – Tuesday 30/05

    Newsletter

    Get daily news updates to your inbox!

    Subscribe to our mailing list to receives daily updates direct to your inbox!

    © 2023 - Fizambia.com - All Rights Reserved

    No Result
    View All Result
    • Home
    • Business
    • Culture
    • Economy
    • Lifestyle
    • Health
    • Travel
    • Opinion
    • Politics
    • Tech
    • World
    • Support Forum
    • Contact Us

    © 2023 - Fizambia.com - All Rights Reserved

    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?