For farking sakes... This is exactly what I hate about the Canadian beer companies, the whole monopolistic approach, there's only TWO breweries in Canada that actually make a difference, and both of them took up so much of the market that NO OTHER brewing company had a chance, and then Sleeman comes in, and they do something rare and become the 3rd largest brewery in Canada in a snap of a finger, with offering almost every possible type of beer, from a cheap person's beer to high quality porter. Everyone knew that as soon as Sleeman bought Unibroue, they were a threat and it was only a matter of time, now Inbev SA (ala Labatt) is looking to buy out Sleeman just because Sleeman is getting to big. This is just a farking disgrace, if Sleeman stays independent and does not get bought out by Inbev, it keep their nice image, an image of true Canadianness, for 100% Canadian owned breweries, theres only a few that actually have support nation wide, Big Rock is one, but they have no where near the support that Sleeman does, and then there's Moosehead, and that's about it.
From CBC:
Sleeman's shares jumped 15 per cent Friday before being halted, closing up $1.75 to $13.40 on the Toronto Stock Exchange.
Earlier in the day, speculation swirled that brewer InBev SA - the maker of Stella Artois, Labatt and Beck's beers - may be eyeing the company as a possible takeover target.
In a statement after markets closed, the Guelph-based brewer confirmed it had hired BMO Nesbitt Burns Inc. as a financial adviser and was exploring "strategic options."
Usually, such reviews mean the company is examining a variety of alternatives, including the streamlining of operations, a merger or a possible sale.
Sleeman said the options included offers to acquire shares or assets of the company, a recapitalization review or business combination.
"There can be no assurance that the review will result in any specific strategic or financial transaction and no timetable has been set for its completion," the firm stated.
"Sleeman stands at a critical point in its evolution," CEO and founder John Sleeman added in a statement Friday.
"It makes sense for us at this time to evaluate all of the different ways in which we can capitalize on the opportunities that benefit shareholders, utilize the experience of our employees, provide the best possible capital structure and allow Sleeman to be more competitive in the premium beer category."
He said the company's board had decided it was appropriate to undertake a comprehensive review of all of the company's strategic and financial options.
"We are and have been enhancing our ability to support (our) growth through numerous cost saving operational initiatives and now Sleeman has a unique opportunity to leverage these assets to further build the business and deliver long term shareholder value," the CEO said.
The company has been fighting a tough battle in the ongoing Canadian beer price wars, and has cut 80 jobs since last August. It now has about 700 employees left at locations across Canada.
It is Canada's No. 3 brewer, but has struggled as consumers turn increasingly to discount beers.
Hamilton upstart Lakeport Brewing (TSX:TFR.UN), for instance, been benefiting from the increased popularity in the "value segment" - basically the cheapest beers on the market - with its buck-a-bottle strategy.
At that company's annual meeting last month, shareholders went as far as to jokingly ask the company if it was directly responsible for the layoffs at Sleeman.
The premium market, for its part, is getting squeezed by new brands and a greater interest in imports.
The landscape is also extremely competitive in Quebec, with aggressive pricing by Molson Coors (TSX:TAP.NV) and Labatt Brewing Co., as those two brewers try to regain their share of the market in the wake of takeovers by Coors Brewers Ltd. and Belgian-based giant Interbrew.
Labatt was fined $250,000 last November, after pleading guilty to a charge of illegally influencing discount beer prices in that province.
On Thursday, it reported a first-quarter loss of $813,000 Thursday, compared to a profit of $1.6 million the year before. Revenue edged up two per cent to $40.6 million from a year-ago $39.7 million.
In addition to Sleeman's own brands, the company brews, owns or distributes many others, including Okanagan Spring, Upper Canada, Unibroue, Guinness, Grolsch, Samuel Adams, Scottish & Newcastle, Sapporo and Pilsner Urquell.
