Drinks Industry in Review: A Year of Ups and Downs
As we reflect on the past year, it’s clear that the drinks industry has experienced its fair share of challenges and triumphs. From factory closures to celebrity investments, and from portfolio changes to legal disputes, there’s been no shortage of news-making events.
Brewery Closures and Restructuring
Carlsberg Marston’s Brewing Company (CMBC) made headlines with its plans to shut down Banks’s Brewery in the English Midlands, while Anheuser-Busch InBev revealed plans to close a distribution facility in Medford, Massachusetts. Meanwhile, Australian wine group Treasury Wine Estates announced plans to divest wines under its commercial portfolio.
Celebrity Investments and New Products
Football legend Lionel Messi launched Más+, a non-alcoholic “hydration drink” brand, while Dr Dre and Snoop Dogg’s US ready-to-drink (RTD) brand Gin & Juice expanded to the UK. Additionally, Diageo and PepsiCo partnered to launch an alcoholic RTD drink combining Captain Morgan spiced rum and Pepsi Max.
Financial Struggles and Bankruptcy
US wine group Vintage Wine Estates filed for bankruptcy and voluntarily delisted its common stock after failing to pay off $60.5m in debt. Stonegate Pub Company, a UK-based pubs and bars group, revealed it may struggle to refinance its debt of £2.2bn.
Regulatory Changes and Controversies
Thailand’s cabinet approved slashing taxes on wine and spirits to promote tourism, while Canada’s federal government capped the duty on alcohol at 2% for two additional years. However, Nestlé faced controversy in France over its treatment of bottled mineral water, and Prime Hydration was accused of using trademarked symbols associated with the US Olympics team.
Executive Moves and Restructuring
Fabien Simon, the CEO of coffee major JDE Peet’s, announced his departure, while Nestlé revealed plans to separate its water and “premium beverages” activities into a global stand-alone business. Diageo faced protests from employees at a packaging plant in north-west Italy after announcing its closure.
Health Concerns and Industry Trends
The World Health Organization listed ultra-processed foods and alcohol among four products that cause 19 million deaths per year globally. Meanwhile, PepsiCo closed a bottling plant in the US, citing physical limitations, and Diageo started testing the sale of its non-alcoholic Guinness on draught in the UK.
These stories and more shaped the drinks-industry agenda over the last 12 months. As we look to the future, it’s clear that the industry will continue to evolve and adapt to changing consumer preferences and regulatory landscapes.
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