S&N reports solid first half

Modern Brewery Age,  August 15, 2005  

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Scottish and Newcastle, the top brewer in the U.K., reported that a new process for "super chilling" draught beer has boosted its top brands in the first half of 2005.

The company reported volume gains for Foster's, Kronenbourg 1664, John Smith's and Strongbow of 5%, against a nearly 4% drop in the UK market for beer and cider.

According to Scottish & Newcastle CEO Tony Froggatt, the colder draught beer is "reshaping the standard lager business, creating a real impetus." Froggatt remarked that Foster's and other brands are now "materially outperforming" the competition. Foster's volume grew 6.4% in the first half.

Froggatt answered critics who have said S&N is too reliant on the mature beer markets of Western Europe. "Despite difficult market conditions," he said, " we are believers in western Europe. We believe there are opportunities there."

Froggatt said that the drop in the U.K. beer market was due to the lack of a major football match in the period. He said he expected the U.K. beer market to recover.

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