Grolsch

As you can see Grolsch experienced a tremendous amount of financial growth over the past 7 years. Sales have jumped almost 25% from the year 2000 to 2007. These numbers are particularly encouraging because worldwide sales of the Grolsch brand were the same in 2007 as it was in 2000. Therefore, we have not seen a reduction in consumer demand in reaction to high beer prices. However, even with records sales, Grolsch’s net profit in 2007 was lower than 2000. This is something that needs to be addressed.

Despite the lower net profit, Grolsch’s stock price has doubled since 2000 to 2007. However, the number of outstanding shares remains the same. Now, I realize that some of this rise in stock value is due to our acquisition by SABMiller, but it is also in part because of speculation about future sales and profits. We have the opportunity to capitalize on this momentum by increasing sales and net profit while cutting costs by increasing market presence in North America and Africa.

Grolsch’s financial strength will not be affected by increased presence in these two markets. As you can see the transport costs for the US and Canada are very high. These costs drive down our net profit. However, we can cut these costs significantly by forming license agreements with established breweries under the SABMiller brand to brew Grolsch in those two markets. Eliminating these transport costs will result in higher profits and increased stock prices. (What do you all think about prices? It is oblivious that prices have gone up because sales are higher while the amount sold has remained flat. I thought I could mention that we can lower prices some and this combined with lower transport costs and increased consumer awareness will only increase profit. Am I adding too much? Wrong/Right?)

We believe that Grolsch’s financial strength and reduction in transport costs along with expansion into North America and Africa will result in higher profits and broader brand recognition.