E-Malt.com Flash 19a. May 09

Slovakia: SABMiller is acquiring major stake in Topvar brewery in Slovakia

SABMiller plc, one of the world’s largest brewers, announced on May 9 that it has agreed to acquire the Slovakian brewer Topvar, a.s. Topvar is located in the City of Topolcany in Western Slovakia and sold 569,000 hectolitres of beer in 2004. The value of the net assets to be acquired is approximately US$15.2 million.

Alan Clark, Managing Director of SABMiller’s European division, commented: “This acquisition complements our existing operations in Slovakia and strengthens our overall position in Central Europe. Topvar brings to SABMiller a strong local brand, an excellent distribution platform in Western Slovakia and a quality production site. The acquisition reflects our strategy of optimising and expanding our positions in developing markets and we anticipate brand, procurement and distribution benefits arising from the transaction.”

Under the terms of the agreement with the controlling shareholders, SABMiller will make an offer to acquire all the shares of the minority shareholders in the Company (40.5% interest). Depending on the level of acceptances under the Offer, the controlling shareholders, who have a 59.5% interest in the Company, have agreed to sell sufficient shares such that SABMiller’s interest will be at least 33%, but not more than 49% of the issued share capital.

Six months after the acquisition of the Initial Stake, the controlling shareholders will sell further shares (“the Additional Shares”) to enable SABMiller to increase its interest to at least 67% of Topvar. The remaining shares held by the controlling shareholders are subject to put and call arrangements exercisable within 18 months of SABMiller acquiring the Additional Shares. ...more info

East Europe: Baltic Beverages Holding AB sold 14% more beer in Q1 2005

East European brewery, Baltic Beverages Holding AB (BBH), announced on May 10 first quarter results (January to March 2005). BBH posted a 14 % rise in first-quarter beer volumes...more info

Dominican Republic: AmBev is progressing in building its brewing plant

AmBev Dominicana has recently announced that the construction of its brewing plant in Dominican Republic is progressing...more info

Canada: Sleeman Breweries posted net revenues increased in Q1 2005 and is focusing on cost controls

Sleeman Breweries Ltd. posted on May 11 lower profits for the first quarter and said it wants to focus on raising sales of premium beer and controlling costs as the Canadian industry faces tougher competition, according to Canadian Press. The Guelph, Ont.-based brewer announced it earned $1.6 million or 14 cents a share for the first quarter ended April 2. That compared with a profit of $2.2 million or 10 cents a share last year. Net revenues rose 5% to $40.2 million from $38.3 million.

Sleeman said the revenue increase was due partially to the addition of Unibroue sales in the quarter as well as increased Sapporo volume and was somewhat offset by the contract brewing loss in Quebec and lower revenues from price discounting in Quebec, Alberta and Ontario.

Chairman and CEO John Sleeman said the company's goal this year is to increase premium beer sales while controlling costs and improving productivity at the company's plants and distribution centres.

"The beer industry in Canada is experiencing major changes, especially in the value category, where small brewers and 'virtual' brewers capitalize on significant tax advantages as a means of competing," said Sleeman ...more info

Denmark: The Company's name is changed from "Bryggerigruppen A/S" to "Royal Unibrew A/S"

The Danish Brewery Group A/S (Bryggerigruppen A/S) announced on May 4 the Company's name has changed from "Bryggerigruppen A/S" to "Royal Unibrew A/S" as of May 11.

The resolution was proposed at the Extraordinary General Meeting on Wednesday, 4 May 2005, at 09:00 and was passed. The Company's former name was recorded as a secondary name. However, as half of the share capital was not represented, subsequent adoption at an Extraordinary General Meeting was required.

China: Kirin Brewery of Japan is to boost beer production and sales in China this year

Kirin Brewery Co Ltd, the second biggest brewery of Japan, plans to increase beer production and sales in China...more info

Malt News

Analysts: Malt industries are expanding elsewhere

Smaller exports are the consequence of expanding malt industries elsewhere, only in few countries (Japan) of lower consumption...more info

Barley News

Europe: Barley crops and markets

The EU barley balance looks still manageable in comparison to the total intervention stock of 15 million tonnes...more info

Canada: CWB has expanded the basis payment contract to include designated barley

The Canadian Wheat Board (CWB) has expanded the basis payment contract to include designated barley. A pilot program of 50,000 tonnes will be offered for the 2005-06 crop year, for farmers who deliver directly to a malt processing facility, Canadian Press posted on May 11.

Pricing will be based on reference grade of Standard Select two-row and six-row barley, in-store Vancouver or St. Lawrence.

Prices will be based on the Winnipeg Western Barley futures market. The program offers increased pricing flexibility by providing the ability to lock in a premium for malt barley over feed barley futures, and take advantage of market rallies that may occur within the crop year.

Hops News

Czech Republic: Czech hop growers produced 6310,7 tonnes of hops in 2004

In 2004 Czech hop growers produced 6,310.7 metric tonnes of hops compared to 5,526.8 metric tonnes of hops in 2003 (+14.2%), according to the figures published by Hop Growers Union of the Czech Republic. The average yield for 2004 was 1,08 t/ha, which corresponds with the years 2001 and 2002 and is 16% higher than last year.

The production in the main growing region of Saaz reached 4435,5 t of hops, the highest yields were recorded in the Moravian Tirschitz region with 1,51 t/ha.

Saaz hops, the Czech variety, accounted for 87,4% of the Czech production with average yield of 1,02t/ha. The quality was very good and the alpha content also better than in two previous years. Very good yields and quality were also achieved with the new Czech varieties Premiant, Sladek and Agnus. The production of these varieties is slowly increasing year by year thanks to demand in the Czech breweries but also in many breweries abroad. Due to strong demand for high quality Czech hops there are no remaining quantities of hops at growers, Hop Growers Union of the Czech Republic said.

Czech Republic is the fourth largest hop producer after Germany, USA and China. In 2004 world hop production totalled about 92,300 metric tonnes, according to preliminary estimations. ...more info