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Reassuringly Expensive
The rather crass marketing phrase used to promote Stella Artois in the UK, could come to haunt its owners, Belgium's Interbrew. Their attempt to become a major player in the UK brewing sector has been stalled by the decision of trade and industry secretary Stephen Byers to block the acquisition of Bass Brewers. As Interbrew has already bought the company, this means they will be obliged to sell it – and analysts reckon this could result in a £800m loss. Hardly good news for investors who recently subscribed for shares in the previously private company – they have seen the shares lose over 20% of their value since the December flotation.
While the decision to prevent further consolidation in the UK brewing industry is at first sight welcome, it is hard to see who else could buy Bass but another large multi-national company, who might have even less interest in Bass' cask beer range than Interbrew. Mike Benner, CAMRA'S Head of Campaigns and Communications said, "We are concerned for the future of Bass Brewers as it is likely that the only potential purchasers are other large global brewers and this would offer few benefits to consumers. The ideal outcome to promote consumer choice, fair prices and access to market for small brewers would be to see Bass Brewers operate as an independent brewer."
"Draught Bass is a unique high profile brand and we would like to see it thrive as a premium and high quality real ale, but it needs care and investment to achieve this. Whatever the outcome of the divestment of Bass, we will be lobbying the owners to provide choice and value for money for consumers."
STOP PRESS Bass intend to challenge Byers' decision
Reproduced from the Full Pint, Issue 8.
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