Information about Scottish & Newcastle

Scottish & Newcastle
	Public (LSE: SCTN)
Founded	1749
Headquarters	Edinburgh, Scotland, UK
Key people	Sir Brian Stewart, Chairman Tony Froggatt, Chief Executive John Dunsmore, MD - Western Europe John Nicolson, MD - Eastern Europe, Asia & USA Ian McHoul, Group Finance Director
Industry	Beverages
Products	Beers, Lagers and Ciders
Revenue	£4,155 million GBP (2006)
Operating income	£535 million GBP (2006)
Net income	£331 million GBP (2006)
Employees	4,500
Subsidiaries	S&N UK; Brasseries Kronenbourg; Alken-Maes; Central de Cervejas; Hartwall; Mythos; Waverley TBS; Beamish & Crawford; S&N Pub Enterprises
Website	www.scottish-newcastle.com

Scottish & Newcastle (S&N) is one of the world’s leading "long alcoholic drinks" (LADs) companies with strong positions in 15 countries, including leadership in the UK, France and Russia. It is headquartered in Edinburgh, Scotland, UK ,and is a FTSE 100 Index company. In the last 20 years, S&N has expanded significantly from its home base to become a major international business with beer volumes growing almost tenfold.

History

By 1985, the company had become a regional brewer focused on Scotland and the North of England, ranked number five in the UK and selling around 6 mhl per annum. By 1995, with the purchase of rival brewing business Courage, S&N had become the UK’s leading brewer, producing around 15 mhl per annum. Its UK brewing division became known as Scottish Courage but this reverted to "S&N UK" in Feb 2006. Its managed Pub division was known as "S&N Retail" with around 2,500 outlets in the estate. In early 2000, S&N expanded outside the UK via a number of acquisitions in Western Europe, growing sales to over 50 mhl per annum. In July 2003, S&N acquired the Bulmers cider business, adding the Strongbow, Scrumpy Jack and Woodpecker brands to its portfolio, together with the UK's biggest cider mill and orchards in Hereford.

2004 saw some radical cost cutting measures, particularly within the UK where it was noted by analysts that the cost base was too high. During the year, the Fountain Brewery in Edinburgh was closed, followed some months later by the Tyne Brewery in Newcastle. Reciprocal acquisitions saw the Caledonian Brewery in Edinburgh and the Northern Clubs' Federation Brewery in Dunston added to the business.

By 2005, S&N had become a major European brewer with a balance of high growth emerging markets and high volume developed markets. Annual volumes are now approaching 60 mhl.

In February 2005, Scottish & Newcastle and Carlsberg UK finalised a joint venture to carry out Technical Services work in the UK. Service Dispense Equipment Limited (SDEL) was formed from the dispense assets of both businesses. This work is now contracted by the JV, to a new company Innserve Ltd. Innserve supplies, installs and maintains drinks dispense systems in 98,000 Pubs and bars around the UK.

In 2006, S&N entered into a joint venture with the Swiss based freight company, Kuehne and Nagel to set up a UK drinks distribution company (K+N Drinks Logistics). Some 2,000 S&N employees transferred to the new business.

Pub Enterprises

In 2002, S&N sold its remaining Pub estate to the Spirit Group - retaining a successful tenanted pub management business (S&N Pub Enterprises) with contracts to look after some 2,000 pubs on behalf of banks and other Pub companies.

BBH

By acquiring Hartwall, Finland’s leading beverage company business, S&N became 50% owners of Baltic Beverage Holdings (BBH) encompassing brewing interests in Russia, Ukraine, Kazakhstan and the Baltic Countries of Latvia, Lithuania and Estonia. The remaining 50% of the business is owned by Carlsberg.

Recent takeover speculation

In October 2007, Dutch Company Heineken and Danish Carlsberg jointly announced that they were considering forming a consortium to bid for, and acquire the total capitalisation of Scottish & Newcastle. No formal offer has been put to S&N and the bidding parties have yet to announce a timetable for the acquisition.^[1]

Brands

S&N owns or co-owns three of the top ten beers in Europe.

• Baltika
• Foster's
• Kronenbourg 1664.

In addition to these key brands, its portfolio includes other national drinks:

• John Smith's
• Strongbow Cider in the UK.
• Kronenbourg Red&White in France.
• Sagres in Portugal
• Lapin Kulta in Finland
• Maes pils in Belgium
• Kingfisher in India. http://www.kingfisherworld.com/corporate/corporate-index.htm
• Beamish Stout in Ireland.

Amongst S&N's speciality niche brands are:

• Newcastle Brown Ale, heartland in the North East of England and now all over America
• Grimbergen, a Belgian Abbey beer.

References

External links

• Scottish & Newcastle
• S&N Pub Enterprises

•  • [ e] FTSE 100 companies of the United Kingdom

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