In the latest twist to globalisation, New Zealand's two main breweries will indirectly have the same shareholder.

Lion Nathan owner Kirin Holdings, one of Japan’s leading beer companies, has taken a shareholding in Singapore's Fraser & Neave, which has an indirect shareholding in DB Breweries.

Kirin is paying nearly $US1 billion for the Singapore government’s 14.7% stake in F&N, which in 1931 with Heineken formed Asia Pacific Breweries (formerly Malayan Breweries). (Heineken is the largest shareholder in listed APB with 42.5%.)

Beer drinkers’ more sophisticated palates are boosting the bottom lines of the two major brewers despite an overall drop in market volume.

Asia Pacific Breweries, owner of DB Breweries, says pretax earnings are up 52% for the first half, due mainly to a 4% volume gain, favourable sales mix and the appreciation of the New Zealand dollar.

Overall, APB reported group revenue grew to $S1.25 billion for the six months to March 31 – 17% higher than the same period last year, mainly due to higher volumes.

DB Breweries’ pretax profit fell 79% in its latest year because of a more competitive market, unfavourable sales mix, higher packaging costs and unrealised foreign exchange losses.

The result is reported in the annual accounts to September 30 of Asia Pacific Breweries (APB),  a joint venture between Dutch brewer Heineken and Singapore’s Fraser & Neave.

DB Breweries is taking advantage of the slumping market to add to its hospitality portfolio, buying up three popular bars and is in talks to build a third.

DB, in conjunction with its hospitality joint venture Barworks, has purchased Takapuna’s Copper Room, Christchurch’s Soho bar, and is in discussions to purchase Degree Bar in Auckland’s Viaduct.

DB has purchased a 75% stake in Hurstmere Pubs, owner of the Copper Room, with the remaining 25% stake held by Barworks, all up costing $268,100.