To: ANNA
From: RANJTIH SEERVI
Subject: Concise Description of operation of Asian beer, spirits and non-alcoholic beverages
companies
Respected Anna,
This is a a summary that includes a brief description about five potential targets for WorldWide Brewing Co if it
wants to leverage its operation in Asia
Company Description Relevance to WorldWide Brewing Recommendation
HappyHour HappyHour Co. is the largest It has similar operations to WorldWide Brewing Recommend
Company player in Singapore and Malaysia, across the same segments and is the leading
in the segments of beer, spirits player in Singapore and Malaysia, suggesting
and non-alcoholic beverages. Its the potential for strategic benefits and
operations include manufacturing synergies. It has solid financial results and an
facilities, distribution and direct ownership structure that is owned by 3
sales and it has demonstrated families, rendering a potential acquisition
strong growth in EBITDA in FY2020 relatively simple and feasible. HappyHour Co.
which was up 20% pcp and would be appropriate to share.
amounted to US$300mm.
Spirit Bay Spirit Bay is the #1 player in It has a centralised manufacturing hub Recommend
Indonesia, and #2 in Singapore and making it cost-effective and thus the leading
Malaysia in its business operation business innovator,distributor and seller in
of beer,spirits and non-alcoholic Indonesia,Singapore and Malaysia.Its capital
beverages.It has reported 40% structure is ideal as it is mostly Globally
growth by virtue of its growth in sponsored and may be appropriate for
EBITDA which amounted to evaluation on basis of its growth and financial
US$400mm. risk management.
Hipsters’ Hipsters’ Ale, a Malaysian beer This manufacturing facilities is led by a Recommend
Ale and spirits company operating in consortium of 30 independent microbreweries
Singapore, Indonesia, Japan, Korea in each respective region and thus practising a
and Cambodia is a diversified and special democratic management principle to
strategically operating company ensure controlled and coordinated
which is slowly making it presence operations.Its ownership structure can be
and making it difficult for shared for statistic analysis.
competitors as it reported 15%
growth by making substantial
figure of US$200mm in FY2020
Brew Brew company is the biggest Brew company is listed on the Bursa Malaysia, Recommend
Company alcohol manufacturing player in the stock exchange in Malaysia, its capital
Malaysia but it has reported structure is mostly institutional shareholders
US$800mm in EBITDA which is a having ownership rights and voting rights.Its
downward performance of 5% in highlighting business modal incorporating risk
FY2020 which may be interesting of capital can be shared.
case study to be seen as a key
player in alcohol business
Bevy’s Bevy’s Direct is a wholesale It is owned by one family making it a robust Not Recommend
Direct distributor operating in beer, family business modal in which most critical
spirits and non-alcoholic decisions about
beverages across Malaysia, China, sales,manufacturing,finance,distribution,human
Indonesia, Japan, Korea, resource are made by this family and as such
Cambodia, Australia and New there may be lack of expertise,supervision and
Zealand, and they recorded working capital management.It is not to be
US$250mm in FY2020 EBITDA, up shared as it have many limitations.
20% from the year prior.
Let me know if you have any questions or if I can help with anything els
Thank you
Ranjith
(Ranjith Seervi)
