(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: 2014 Outlook: EMEA and US Drinks Companies
MILAN/LONDON, December 13 (Fitch) Fitch Ratings says major EMEA and US drinks
companies will benefit from strong momentum in the US from demand for premium
products. This will help offset persistent weak demand in EU and slower
consumption growth in developing markets, resulting in Stable Outlook for the
sector in 2014.
In a report published today, Fitch says it expects operating profits to remain
stable or see moderate growth and free cash flow generation to remain healthy,
despite continuing investments in maturing stocks at spirits-makers and capex at
Companies in the sector could be tempted to increase shareholder distributions
or engage in M&A activity - particularly if opportunities arise at affordable
prices - and reverse the subdued pace of M&A seen in 2013. The value of M&A
transactions announced in 2013 has been much lower than in 2012, which saw over
USD35bn in announced or completed deals in the brewery and spirits sectors.
The report, '2014 Outlook: EMEA and US Drinks Companies', is available at
www.fitchratings.com or by clicking on the link above.
+39 02 879087214
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+1 312 3530 3125
Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email:
Additional information is available on www.fitchratings.com.
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