Lion Nathan (LNN)

Shares / Stock Code

LNN

Stock Exchange / Sharemarket

ax

Lion Nathan Ltd (LNN) is a company engaged in producing, marketing as well as distributing alcoholic beverages. The company's principal operations are mainly in Australia and New Zealand. LNN was listed on the Australian Stock Exchange on the 5th of June 2000. Its average annual revenue reaches approximately $1 billion out of its issued capital of approximately $436 million. Its headquarters is located in Sydney, Australia and to date; around 1650 people are employed in the company. Lion Nathan Ltd operates mainly in three business segments: Lion Nathan Wine, Lion Nathan Australia and Lion Nathan New Zealand.

Lion Nathan Ltd's wine segment is engaged in the production of fine wine from the company’s wineries located in Victoria, South Australia, Western Australia, New Zealand's Marlborough region and Argyle Winery situated in Oregon, U.S.A. Aside from wine production, this business segment is also in charged of distributing wines portfolio from a wider geography of Australia and New Zealand as well as from well-known wine regions in Italy, South Africa and France. The Bacardi Lion joint venture offering RTD products and Bacardi Spirit in Australia is also a part of this business segment.

Lion Nathan Australia is engaged in the production, marketing, sale and distribution of beer from the four primary breweries located in Brisbane, Sydney, Perth and Adelaide including a smaller craft brewery located in Sydney. The companies included in this business segment are Castlemaine Perkins, Tooheys, South Australian Brewing and the Swan Brewery. Through this segment, Lion Nathan Ltd also offers ready to drink spirits as well as dark spirits.

Lion Nathan New Zealand focuses on the production, marketing, sale, and distribution of a wide variety of alcoholic beverages that include beer coming from three primary breweries located in Christchurch, Auckland and Dunedin.

Lion Nathan Company History

Two New Zealand companies became one in 1988 and Lion Nathan was established. These were LD Nathan, general merchandise and retailer and Lion, hotel operator and wine, brewer and spirit manufacturer. The history of Lion's Brewing may be tracked in the early 1940s in Auckland, New Zealand when wholesalers William Brown and John Logan Campbell founded the Hobson Bridge Brewery which was later became Domain Brewery and when Albert Brewery was bought by Ehrenfriend which was managed by Ehrenfriend's nephew Arthur Myers who was the grandfather of Douglas Myers, the chairman of Lion Nathan.

Great Northern Brewery started its manufacturing in Auckland's Khyber Pass by Richard Seccombe in 1861 and this led to the creation of Lion brand. 10 brewing companies established New Zealand Breweries in 1923 and Lion was one of them. Chief Executive Officer of C & E was Douglas Myers in 1970. After a year, Lion Breweries and C &E created New Zealand wine and spirits (NZWS).

The company's name was altered Lion Breweries in 1977. C&E traded its shares in NZWS in 1981and purchased 20% of Lions Breweries. In 1988, Lion Nathan started its soft drinks and beer business. Non-core asset was sold for $NZ 1.4 billion and in 1990 purchased 50% of Australia’s Natbrew Holdings. It also engaged with Pepsi Co to create market and provide Pepsi products in Australia.

50% of Natbrew was taken by Lion Nathan and extended the Pepsi business in New Zealand in 1992. In the following year, Hahn Brewing, New South Wales boutique brewer and the South Australian Brewing company was taken by Lion Nathan. 60% stake of Taihushui brewery found in Wuxi was purchased and this resulted to market beer in China in 1995. Ownership of Taihushui brewery jumped to 80% in 1996. Lion Nathan brand was taken as one's own by all the remaining company divisions in 1997.

16% holding of the company was traded by Dr. Myers to a new major stock holder which is the Kirin Brewery founded in Japan and expanded to gain 45% stake in 1998. Lion extended its stake in China and shared a brewery at Suzhou. The company transferred its domicile and was listed on the Australian Stock Exchange in 2000. Drink businesses were opened in New Zealand and Australia.

Wither Hills located in Wairau Valley, New Zealand was taken by Lion Nathan in 2002. Bacardi-Martini and Lion Nathan founded in 2003 a joint agreement to sell market and distribute spirits and range of ready to drink in Australia. China Resources Breweries purchased Chinese beer businesses owned by Lion Nathan for $71 million in 2004.

The company founded a joint venture with Tucker Seabrook and vineyards which are distributors of fine wine. Fine wine partners established a business in 2005 to show distinctive wines from all regions of Australia and around the world.

Lion bought all shares in Coopers Brewery found in Australia in March 2006. Linfox provided distribution services and warehousing to Lion Nathan in Australia when a tactical joint venture was formed in October 2006. Lion Nathan departed from Independent Liquor in December 2006. Trademark and distillery operations of Inner Circle Rum were obtained in March 2007. Cellier le Brun was purchased in April. The share holding went up from 33.9% to 37.8% in Little World Beverages in August 2007 by many market purchases. In November 2007, J Boag & Son Pty Limited, Tasmanian brewer was bought by Lion Nathan for $325 million from San Miguel Corporation based in the Philippines.