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Carling Brewing Company (CBC), the new entity consisting of the

former Bass brands that Interbrew has been forced to sell by the

Department of Trade and Industry, will be a bigger business than

Interbrew UK when sold off.

According to Bass Brewers marketing director Mark Hunter, last week's

DTI decision has been widely misrepresented as Interbrew only having to

offload Carling. "In fact, it is only allowed to keep Tennent's and Bass

Ale. It has to sell the rest of the brands."

Hunter and other Bass staff are likely to move with CBC brands. Until a

buyer is found, the portfolio of brands to be sold has been nicknamed

'Carling Brewing Company' although it does not formally exist. As well

as Carling, the collection comprises Grolsch, the UK's fastest growing

premium lager, Worthington, the fastest growing ale, Reef, the number

four pre-mixed spirit drink, Caffrey's, and brands including Red and

Hooch.

Hunter explained that Interbrew was not allowed to break up CBC and sell

it in pieces, because the regulators wanted to see four dominant players

in the brewing market.

Whoever buys CBC will become the UK's second biggest brewer with 19% of

the beer market, behind Scottish & Newcastle's 26%. Interbrew will be

left with 15.8%.

Bass sales director John Holberry added that the new business would be

able to expand its position in premium lagers, now that it is not in the

same stable as Stella Artois.

Interbrew is considering approaches for CBC. Anheuser-Busch, South

African Breweries, Molson, Coors and Heineken are all said to be

interested.

COMMENT

The DTI's ruling is bound to result in a reshuffle of agencies on the

Bass and Interbrew rosters. The London and Edinburgh shops of The Leith

Agency are facing uncertainty as they handle Carling and Grolsch, as

well as Tennent's and Bass Ale, which will stay with Interbrew.

Separately, if Heineken does buy CBC and relaunches its Heineken brand

as a premium lager as predicted, its licensing deal with Interbrew will

finish and Lowe Lintas, which currently handles both Heineken and Stella

Artois (Interbrew), could lose one of those accounts.