Stmt re Guinness Peat Group
Young & Co's Brewery PLC
19 June 2000
YOUNG & CO.'S BREWERY, P.L.C.
Comment regarding Guinness Peat Group
The Board of Young & Co's Brewery PLC has noted the
attempt by Guinness Peat Group, which holds 8.5% of the
voting equity in Youngs, to generate interest in its
latest resolutions to be put to shareholders at the
forthcoming AGM. In particular the Board note that all
except one of these proposals are identical to those that
were resoundingly rejected by an overwhelming majority of
shareholders at last year's AGM. Indeed, two of the
resolutions were rejected not only last year, but also
the year before.
John Young, Chairman, commented:
'We are no longer surprised that Guinness Peat chooses to
conduct itself in this public manner, but we are
nevertheless disappointed that they continue to introduce
proposals that have been consistently rejected by the
vast majority of shareholders.
'We and our advisers are surprised by the naivety of the
terms of the new resolution that they have proposed this
year. By calling on the Board to investigate the
feasibility for acquisitions, mergers or joint ventures
with other regional brewers and to report back the
findings to shareholders, Guinness Peat appear to be
showing a lack of consideration for the price sensitivity
of such actions and a lack of understanding of our
strategy.
'As Guinness Peat should know full well, we are
continually evaluating all opportunities in pursuit of
our strategy to improve the utilisation of capacity in
the brewery. This strategy has been outlined in each of
our past three annual reports and, to date, we have
achieved the following: secured brewing contracts from
the major brewers such as Bass and Whitbread; increased
the sales of our own beers into the free trade and export
markets; acquired a significant beer brand in Waggle
Dance from Vaux, invested over £12 million in our retail
estate through acquisitions and refurbishments in the
past year alone; acquired a strategic stake in the West
of England brewery, Smiles of Bristol; and, most
recently, launched our own mid-gravity beer called Triple
'A'.
'We will continue to pursue opportunities that we believe
will enhance the performance of the business and provide
value for shareholders, but we have no intention of
limiting our ability to negotiate in shareholders'
interests by conducting this strategy in an open forum as
proposed by Guinness Peat.'
For further information, please contact:
John Olsen, Hogarth partnership Ltd 020 7357 9477
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