Beverage Bulletin... Cobra Beer Is Restructured
Cobra Beer, Britvic, Brewing industry, Dr Pepper Snapple
The cash crisis at Cobra Beer, the Indian lager group controlled by Lord Bilimoria, is expected to precipitate a company voluntary arrangement (CVA) or a pre-pack administration as the company is restructured ahead of a sale. The group, which in November appointed Rothschild to find a buyer, is understood to be close to agreeing the sale of the Cobra brand in the UK to a new joint venture controlled by Molson Coors, the American brewer behind the Carling and Worthington brands.
Britvic pointed to signs of renewed life in the soft drinks market as it posted a 16.3 rise in interim profits. The group, which makes Robinsons squash, said sales growth was 6.3% in the six months to 28 March, adding that revenues had accelerated in the second half of the period.Pre-tax profits before exceptional items rose to £20m, up from 17.2m in the same period last year. But the group highlighted £12m of restructuring costs, including redundancies in the UK and Ireland.
The shock departure of two top executives from the brewing industry comes amid growing alarm over falling sales. Head of Britain's biggest brewer, Jeremy Blood, had abruptly left his post at Scottish & Newcastle. Two days later the industry was rocked by a second resignation. Tim Clarke the head of Mitchells & Butlers had thrown in the towel. More on this story
Dr Pepper Snapple has reported net sales down 3% for the first quarter of 2009, largely due to the loss of distribution deals for Hansen Natural's Monster Energy drink, but raised earnings guidance for its full-year.
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