Buyers emerge amid rumours of Bass beer sale

A NORTH American brewing giant and small regional UK brewer have emerged as the front-runners to buy beer brand Bass in this country.

It is believed brewing major Molson Coors and Well's & Young's, based in Bedford in England, are favourites to land Bass as current owner Anheuser-Busch Inbev is understood to be considering a sale.

AB Inbev, the world's biggest brewer, is thought to want to focus instead on its premium lager portfolio, which includes Stella Artois, Beck's and Budweiser. It declined to comment on what it called "market speculation" about a potential sale.

It is thought that because of Bass's sharp sales decline in the UK in recent years it will only fetch about 15m to 20m.

That is a fraction of the 180m paid last summer by C&C, the Irish brewers of Magners cider, for AB Inbev's Tennent's brand, Scotland's best-selling lager, as well as Glasgow's Wellpark Brewery.

It is understood the sale process excludes both Bass's distinctive red triangle trademark – the first registered in the UK – and international rights, including lucrative exports to the United States.

Carl Short, drinks analyst at Standard & Poor's equity research, said: "If the strong rumours are true that AB Inbev is looking to sell Bass beer it is unlikely to fetch anywhere near the price paid by C&C for Tennent's.

"Tennent's had kept a strong hold on its Scottish market, whereas Bass in the UK has been allowed to dwindle. It's a shame, but it is a shadow of its former self.

Some industry estimates indicate that Bass's volumes have fallen up to 80 per cent from a peak level of one million hectolitres per year – about 200 million pints annually in the brand's heyday.

"Bass has suffered from a general problem in the UK whereby for a long time brewers have been pushing lager at people," Short said. "There is a bit more equilibrium between the lager and ale markets now, but Bass is in the position of being owned by a company like AB Inbev which is very much focused on its lagers."

Bass is now brewed under contract by rival brewer Marston's, but it is believed to have ruled itself out of any acquisition because it wants to focus on building up its existing ale brands such as Pedigree, Hobgoblin and Jennings.

C&C, where former Scottish & Newcastle management run the company, led by chief executive John Dunsmore and chairman Sir Brian Stewart, also appear not to be interested as they have said they want to digest the Tennent's acquisition. Neither Marston's or C&C would comment.

By contrast, Molson Coors has the cash reserves for such an acquisition and is seen as wanting a major UK ale to go along with its Carling brand, Britain's best-selling lager.

A spokesman for Wells & Young's said: "As the news about Bass is speculation and rumour at this stage it isn't appropriate to make any comment."