Bass Mulling Sale of Its Breweries

Bass, which owns some of Britain’s best-known beer brands, is considering selling its breweries at a time when it is focusing more on its Holiday Inn and other hotel holdings and expanding its pub chains. Bass confirmed that it is weighing “strategic options” for its brewing business, but said in a letter to the London Stock Exchange that “no decisions have been taken.” A Bass official, speaking on condition of anonymity, said the strategic review could result in a sale. Dutch brewer Heineken said it might make a bid. Bass also owns the Inter-Continental and Crown Plaza hotel chains and hundreds of pubs. Its popular beer brands include Bass Ale and Carling lager. Bass is reviewing its brewing business at a time when beer consumption in Britain is waning and the government is investigating possible industry price-fixing. Bass earned 23% of its profit last year from sales of beer. Its return on capital for brewing was a respectable 18.9%, but company spokesman Mark Rigby said the opportunities for growth are better in the hotel and pub businesses.