REMARKABLE COMEBACK FOR PABST BREWERY
REMARKABLE COMEBACK FOR PABST BREWERY MILWAUKEE, July 15 /PRNewswire/ -- Lutz E. Issleib, chairman,
announced Pabst Brewing Co. could be the first major American brewer to stage a historic marketing comeback in the industry's history.
Pabst was acquired by the S & P Co. in 1985 after suffering business setbacks caused from changing conditions in technology, markets and competition. At the time of the purchase, beer industry analysts predicted the company's demise within a few years. New management had a different point of view and, as a result of draconian cuts in overhead expenses and a tight-fisted expansion plan, including capital investments in plant improvements, was able to turn the failing company completely around. Issleib and a lean sales force reduced the rate of decline and began to increase volume after bottoming out in 1988. A 10 percent improvement was posted in 1989 and followed by increases in each year since. First half shipments for this year are running a healthy 7 percent ahead of last year, and as a result, will deliver more than 7 million barrels by year's end. Included in this spectacular performance is, "The King of Malt Liquors," Olde English 800, which has catapulted to the No. 1 selling malt liquor in the United States. At this rate, Issleib is optimistic about building Pabst's domestic shipments back to a targeted 10 million plus barrels by 1994, the brewery's 150th anniversary. Additionally, Pabst Brewing has chalked up big gains in the export market over the past three years, with better than a 30 percent increase 1991 over 1990, which itself was a stunning 48 percent ahead of the previous plus year. On top of this positive growth, Pabst successfully engineered a joint-venture agreement in 1986 to construct breweries in China to produce the Pabst Blue Ribbon brand. The first brewery, located in Zhaoqing, has a capacity of 80,000 tons (equivalent to 6 million U.S. cases) per year. Already, according to Deputy General Manager Niu Zhiang: "We've received orders for most of our projected output for next year and expect to exceed the brewery's designed capacity." An expansion program, to be carried out in the next few years, aims to quadruple Pabst's production in China and will include the Hamm's and Olympia brands for both domestic China consumption and export to Hong Kong, Macao, Japan and other southeast Asian countries. -0- 7/15/92 /CONTACT: Trevor Goodman of Trevor Goodman, 800-WI-PABST, for Pabst Brewing/ CO: Pabst Brewing Co.; S & P Co. ST: California IN: FOD SU: AL-EH -- SD002 -- 9368 07/15/92 08:02 EDT
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|Date:||Jul 15, 1992|
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