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E-Malt.com Newsletter 08a
February 17 - February 19, 2014
Quote of the Week
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Currency Rates
Base Currency: US Dollar
on February 19, 2014 |
Base Currency: Canadian Dollar
on February 19, 2014 |
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1 USD = 0.7286 EUR
1 USD = 0.5986 GBP
1 USD = 1.0959 CAD
1 USD = 1.1065 AUD
1 USD = 102.3240 JPY
1 USD = 2.3924 BRL
1 USD = 35.3226 RUB
1 USD = 6.1037 CNY
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1 CAD = 0.9126 USD
1 CAD = 0.5463 GBP
1 CAD = 0.6650 EUR
1 CAD = 1.0099 AUD
1 CAD = 93.3856 JPY
1 CAD = 2.1834 BRL
1 CAD = 32.2369 RUB
1 CAD = 5.5705 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada: 2013-14 barley exports forecast to drop by 3%
...Click here
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USA: The American Malting Barley Association adds two new malting barley varieties to its list of recommendations
...Click here
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USA, VA: Virginia has untapped potential for hops production
...Click here
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USA, FL: Craft beer business booming in South Florida
...Click here
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USA, HI & CA: Brewery partnership will bring more craft beer to Hawaii
...Click here
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Canada, ON: Ontario craft brewers seek more beer distribution options
...Click here
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USA, MD: Oliver Breweries expands its brewing operations
...Click here
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USA & Canada: New Belgium Brewing to expand throughout Alberta, Canada
...Click here
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USA, CA: 21st Amendment to expand beer operations to East Bay
...Click here
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USA, OR: GoodLife Brewing Company undergoes major expansion
...Click here
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USA, MT: Beaver Creek Brewery brewery becomes year-round business
...Click here
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USA, FL: Tequesta Brewing Company seeking approval for a brewery in Palm Beach Gardens
...Click here
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World: EU malt exports increase 7% in July/November 2013
...Click here
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World: Carlsberg’s Q4 earnings rise to 2.32 bln Danish kroner
...Click here
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Japan: Suntory Holdings reports huge rise in annual profits
...Click here
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EU: Barley export licence bookings total 4.83 mln tons as of the beginning of February
...Click here
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Nigeria: Guinness Nigeria Plc’s half-year results impacted by continuing softness of beer market
...Click here
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China: China's barley imports are forecast at 3 mln tons
...Click here
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Australia: Asia driving the demand for Australian malting barley
...Click here
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The Czech Republic: Czech President against privatisation of Budejovicky Budvar
...Click here
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Chile: Compania Cervecerias Unidas earnings per share beat analysts’ estimate
...Click here
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Nigeria: Nigeria’s beer industry records decline in Q3 2013 but still is believed to have plenty of room for expansion
...Click here
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Japan: Suntory is no stranger to working against the odds
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India: UB Group loses some more shares in United Spirits
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India: CMJ Breweries to brew and distribute Kaltenberg beer under license
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Graph of the Week
Table of the Week
EU Malt Exports
Prices Evolution
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
These Days in Business History
February 17
1878 Silver dollar became U.S. legal tender
1986 1st Francophone Summit convenes at Versailles
1989 Egypt, Iraq, Jordan and North Yemen form common market
February 18
1933 1st issue of Newsweek magazine published
1939 Golden Gate International Exposition opens on Treasure Island
1981 Chrysler Corporation reports largest corporate losses in U.S. history
February 19
1878 Thomas Alva Edison patents gramophone (phonograph)
1899 Cornelius Vanderbilt Whitney, Pan Am Airways (World airways) founder is born
1969 1st Test flight of Boeing 747 jumbo jet
Agenda
World Beer Cup 2014 key dates:
-Call for Entries: Oct. 28, 2013-Nov. 1, 2013
-Judging: April 7-8, 2014 in Denver, Colorado
-Gala Awards Ceremony: April 11, 2014 in Denver, Colorado
February 2014:
19-22: National Winter Ales Festival 2014 (Derby, UK)
March 2014:
12-15: Brazilian Beer Festival (Blumenau, Brazil)
18-19: Food and Drink Technology Africa 2014 (Johannesburg, South Africa)
23-28: IBD Convention - Asia Pacific Section (Ho Chi Minh City, Vietnam)
April 2014:
07-08: World Beer Cup 2014 (Denver, USA)
08-11: Craft Brewers Conference 2014 (Denver, USA)
13-17: Trends in Brewing 2014 (Ghent, Belgium)
22-24: Pivovar (Brewer) 2014 (Moscow, Russia)
26-27: Zythos Beer Festival 2014 (Leuven, Belgium)
May 2014:
21-24: Pivo (Beer) 2014 (Sochi, Russia)
22-24: Copenhagen Beer Festival 2014 (Copenhagen, Denmark)
June 2014:
11-15: Mondial de la Biere 2014 (Montreal, Canada)
August 2014:
12-16: Great British Beer Festival 2014 (London, UK)
September 2014:
08-11: Worldwide Distilled Spirits Conference 2014 - IBD Scottish Section (Glasgow, UK)
25-27: Drink Technology India 2014 (Mumbai, India)
October 2014:
13-16: China Brew and Beverage 2014 (Beijing, China)
November 2014:
11-13: Brau Beviale 2014 (Nuremberg, Germany)
12-14: Vietbrew 2014 (Ho Chi Minh City, Vietnam)
More events are available on site www.e-malt.com
News Articles
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Canada: 2013-14 barley exports forecast to drop by 3%
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For 2013-14, Canada’s barley exports are forecast to decrease by 3% to 2.1 million tonnes due to a recovery in world feed and malt
...More info on site
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USA: The American Malting Barley Association adds two new malting barley varieties to its list of recommendations
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The American Malting Barley Association has added two new varieties to its list of recommendations for farmers to plant in 2014, Capital Press reported on February 18.
The additions are two-row variety ABI Voyager and six-row variety Innovation, both developed by Busch Agricultural Resources from crosses made at the company’s facilities in Fort Collins, Colo.
According to an association press release, ABI Voyager has high yields in the intermountain region. Its improved resistance to the disease spot blotch may allow it to be grown farther east than most North American two-rows.
Innovation is broadly adapted and exhibits good kernel plumpness in the upper Midwest and irrigated regions of western North Dakota and eastern Montana.
The new varieties are high-yielding and suit the needs of Anheuser-Busch and other brewers, said Scott Heisel, association vice president and technical director.
No varieties have been dropped from the previous year.
Recommended two-rowed varieties are ABI Voyager, AC Metcalfe, CD Copeland, CDC Meredith, Charles, Conlon, Conrad, Expedition, Harrington, Hockett, Merit, Merit 57, Moravian 69, Pinnacle, Scarlett and Wintmalt. Recommended six-rowed varieties are Celebration, Innovation, Lacey, Legacy, Quest, Robust, Stellar-ND and Tradition.
Most malting barley acres are contracted. Heisel said that the amount of malting barley used each year by the industry has
...More info on site
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USA, VA: Virginia has untapped potential for hops production
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Agricultural business experts say Virginia has untapped potential to become a niche market for hops, Dailyprogress.com reported on February 18.
Although hops are a high-maintenance, labor-intensive crop, “Our market for hops is growing,” said Stan Driver, founder of Hoot’n Holler Hops.
Driver organized and was among a handful of industry experts to lead the Virginia Hop Growers’ Workshop last week. About 100 people attended the daylong event at the Rockfish Valley Community Center.
“We’ve got people from Maryland, Kentucky, Tennessee, North Carolina and Virginia. This really became a regional event,” Driver said.
The event’s key speaker, Jeanine M. Davis of North Carolina State University, is a state extension specialist and a hops and horticulture expert.
“I think there is potential for a Southeastern hops industry,” Davis said. “It’s going to be a niche market, but I think there’s a lot of potential,” she said.
Davis and Driver said Virginia’s position as an emerging market is solidified by the state’s strong and growing craft beer market. Local hops, Driver said, add to the handcrafted narrative that makes local beer appealing to consumers.
Although Virginia hops production is generally supporting local brewers at a niche level, “it provides them local sourcing and a local identity,” Driver said. “They pass
...More info on site
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USA, FL: Craft beer business booming in South Florida
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At Wynwood Brewing Co., founder Luis G. Brignoni is eagerly awaiting the arrival of new, stainless steel fermentation tanks that will triple the capacity of his 4-month-old brewery, MiamiHerald.com reported on February 16.
“We thought we had the perfect size space and all the tanks we’d need, and then things just took off,” he said, standing on the concrete slab where the new equipment will go, any day now. “We’re trying to keep up while maintaining consistent quality.”
Funky Buddha Brewery, which opened in June in Oakland Park, also is expecting a shipment of big tanks this month that will help boost the brewery’s 2014 production capacity to 15,000 barrels of beer, more than three times the 4,000 barrels it brewed last year.
“We started with 18 retail accounts, and now we’re in something like 400 bars and restaurants from Sebastian to Key West,” said John Linn, Funky Buddha’s brand manager. “Meteoric is really the only way to describe it.”
In Boynton Beach, Mike Halker’s Due South Brewing Co. is growing, too. He said he plans to double his production this year, to 6,000 barrels. When asked about sales, he gestured toward his 18-month-old brewery’s rows of tanks full of beer:
“Everything in those is
...More info on site
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USA, HI & CA: Brewery partnership will bring more craft beer to Hawaii
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Maui Brewing Co. recently entered into a partnership with San Diego-based Stone Brewing Co. to create a new distribution brand called “Maui-Stone Craft Beverages,” aimed at elevating craft beer awareness and bringing more craft beer to Hawaii, Pacific Business News reported on February 14.
Starting in April, Stone Brewing will begin shipping bottles and kegs to Maui from San Diego, including such brands as California’s AleSmith Brewing Co., Saint Archer Brewing Co., Port Brewing Co./The Lost Abbey, The Bruery-Placentia and Bear Republic Brewing Co., along with Colorado’s Avery Brewing Co. and Oskar Blues Brewery.
Maui Brewing Co. produced 400 barrels from its Kahana brew pub in 2005, and expanded to open the Lahaina brewery in 2007, producing close to 20,000 barrels in 2012.
It plans to move its production to a state-of-the-art brewery at the Maui Research and Technology Park in Kihei, which is expected to open this summer.
The move will help the company meet current demand and give it the ability to open additional markets.
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Canada, ON: Ontario craft brewers seek more beer distribution options
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As demand for craft beer grows, Toronto brewers want alternatives to the LCBO and the Beer Store. Canadian Premier Kathleen Wynne said last week she is in talks with the craft brewing industry about how to “modernize beer distribution.” There is one idea that proved popular among the craft brewery owners: Creating specialty craft beer stores, Thestar.com reported on February 18.
“Let’s maybe open up another avenue to start promoting local craft — help out some of the smaller businesses in communities around Ontario,” said Phil Craig of Burlington-based Nickel Brook Brewing.
Craig was among many who criticized the foreign ownership at the Beer Store, which is controlled by brewing giants Sleeman, Labatt and Molson.
Another beer producer, Troy Burtch said Toronto-based Great Lakes Brewery only stocks one of its beers, Crazy Canuck, at the Beer Store, because of what he sees as lacklustre in-store marketing, and high listing fees.
“A small brewery, you just can’t afford it,” Burtch said.
Spokesman Jeff Newton said the Beer Store has lower listing fees than the LCBO. Two-thirds of the brands it carries are not associated with the owners, and a fifth of those are craft beers, he said. “It’s owned by three brewers, but it’s operated on
...More info on site
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USA, MD: Oliver Breweries expands its brewing operations
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Currently the ale house, which brews its suds as Oliver Breweries, makes its beers on the premises of its bar and restaurant in Baltimore. Because of increasing demand and limited production capacity, the company is expanding its operations into a 12,000-square-foot industrial space, Washington Post reported on February 16.
“I feel very confident and excited once the beer is available the popularity will increase,” co-owner Justin Dvorkin said.
He said the company’s beers are distributed in Maryland, Virginia and Washington D.C., but its current production facility allows it to produce only about 2,000 barrels of beer a year.
The expanded facility, which will eventually include bottling and canning, is expected to allow the company to produce as much as 4,000 barrels in the first year of operation and 6,000 barrels in the second.
The Baltimore Board of Municipal and Zoning Appeals approved using the facility as a craft brewery on February 11.
Dvorkin said the facility will employ about six people, which could double to 12 once it begins canning and bottling operations. Production at the site is expected to begin by no later than August of this year.
The brewery specializes in English-style beers and produces ales such as Draft Punk and Three Lions.
Marshall
...More info on site
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USA & Canada: New Belgium Brewing to expand throughout Alberta, Canada
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New Belgium Brewing announced on February 17 it will expand distribution throughout Alberta, Canada, starting February 24, per an agreement with Horizon Beers, according to Brewbound.
The brewery will initially rollout its flagship Fat Tire Amber Ale and Ranger IPA on draft and in six-packs. New Belgium’s Rampant Imperial IPA, Snapshot Wheat, select offerings from the Lips of Faith Series, and the latest seasonal offering will follow within 90 days, the company said in a statement.
This isn’t the Fort Collins, CO-based brewery’s first foray into Canada, however. It launched in British Columbia last September.
“British Columbia was our first market outside the U.S., and we’ve obviously learned a lot about beer sales in Canada since rolling out there,” said Rich Rush, brewery regional sales director, in the statement. “There are some great emerging craft beer markets in Alberta, and we’re excited to be introducing our brews to the craft beer enthusiasts there.”
While New Belgium grows in Canada, it hasn’t lost sight of its goal of being sold in all 50 states by 2018. The company will begin selling beer in Mississippi, its 37th state, on March 3. New Belgium is “also looking to open Kentucky and Hawaii later this year,” according to
...More info on site
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USA, CA: 21st Amendment to expand beer operations to East Bay
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Noted Second Street brewpub and beer outfit 21st Amendment will be expanding their reach to the East Bay — and likely the rest of the country — starting this fall with the opening of a restaurant, beer garden and brewing facility that will make it one of the largest breweries in the Bay Area, SFist reported on February 17.
The 95,000 square foot location in San Leandro formerly served as a factory for Kellogg Cereal. It'll serve as a full-service campus for the company, with spaces for offices and meeting rooms as well as a full service restaurant and public beer garden. The site will be renovated by Aidlin Darling Designs. The tasting room and brewing facility should open later this year, with the restaurant, offices and beer garden to follow in 2015.
21st Amendment has long been a supporter of the craft beer-in-a-can trend, but most of the cans of their Brew Free or Die IPA and Hell or High Watermelon Wheat are currently bottled in Minnesota, so this is a win for local beer as well. The facilities will be able to produce 100,000 barrels of beer per year to start, but will be scalable to 250,000 barrels. That sort
...More info on site
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USA, MO: O’Fallon Brewery expanding again
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O’Fallon Brewery soon will return production of its craft beer to the St. Louis area. Original owners Tony and Fran Caradonna launched O’Fallon Brewery in 2000 and saw the company’s sales grow to a point in 2008 when they had to contract out a major part of production to meet demand, Newsmagazinenetwork reported on February 17.
Still, the brewery continued to brew draft beer at its original location in an industrial area in O’Fallon. When the recent recession put a crimp in consumer spending and the company’s sales volume felt the impact, the Caradonnas were faced with financial uncertainties and forced to halt production. That’s why, in 2011, they opted to sell a majority interest in the operation to Jim Gorczyca, an Anheuser-Busch and AB InBev marketing veteran with many years’ experience in building beer brands domestically and in Europe.
Gorczyca set out to revamp the company’s distribution, re-establish O’Fallon’s brands and put the brewery on a path for growth and expansion. As interest in the local beer returned, Gorczyca contracted with a Wisconsin brewery to meet demand.
Last week, O’Fallon Brewery announced that it had acquired another industrial building. Plans call for a multi-million-dollar conversion of the facility to a brewery
...More info on site
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USA, OR: GoodLife Brewing Company undergoes major expansion
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The owners of GoodLife Brewing Co. always knew one day they’d be large enough to brew 25,000 barrels of beer annually. They just didn’t know that the day would arrive sooner than anyone thought, Bend Bulletin reported on February 16.
“It was always part of the plan to get to this size,“ said Ty Barnett, co-owner of GoodLife. “We just didn’t think it would happen for a few more years.”
GoodLife Brewing is currently undergoing a massive expansion at its southwest Bend brewery which could potentially nearly triple its production. Having produced nearly 9,000 barrels of beer in 2013, the brewery could increase that number to 25,000 barrels annually with the addition of three new fermenter tanks and a stationary, high-speed canning line.
Two 240-barrel fermenter tanks and a 130-barrel lagering tank are being installed this month, and will be dedicated solely to beer made for distribution in cans.
These additions will enable the brewery to better serve the territories where it already distributes its beer, which include Oregon, Idaho and Washington.
Barnett said making enough beer has always been a challenge for the 21/2-year-old brewery, and the company has only been able to meet 50 percent of demand up until now.
“It’s a good
...More info on site
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USA, MT: Beaver Creek Brewery brewery becomes year-round business
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Budweiser was always the king of beers in this Wibaux. That was until a few local guys got together and joined the craft beer movement by forming Beaver Creek Brewery, Prairiebizmag.com reported on February 17.
What started as a craft beer club based out of nearby Glendive, MT, has turned into a popular regional brewery whose products can be found at restaurants and bars throughout eastern Montana and western North Dakota.
“Our motto is that we educate one palette at a time,” co-owner Jim Devine said. “That’s why we made the Gold. … The Wibaux’s Gold we brewed specifically for opening the brewery because we knew we would need what we call a ‘domestic transformation beer.’”
In the late-1990s, Devine started Beaver Creek with his friend and fellow social worker Sandy Stinnett, of Glendive.
Over the years, the men talked about opening a brewpub. In 2008, the dream became a reality.
“The legend goes that we had too many pints and wound up opening a brewery,” Devine said with a laugh.
Devine and Stinnett were operating Beaver Creek full-time within two years, leaving their social work jobs behind.
“Our initial thoughts were that Sandy and I thought we’ll run this place and keep our other jobs for
...More info on site
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USA, FL: Tequesta Brewing Company seeking approval for a brewery in Palm Beach Gardens
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An application to the Palm Beach Gardens Planning and Zoning Department filed last November shows that a Houston company is seeking approval for a Twisted Trunk microbrewery, New Times Broward-Palm Beach reported on February 17.
Twisted Trunk -- the brewery from Santa Rosa, California? Yes, but it's not the same brewery.
In Florida, Twisted Trunk is a fictitious name created by Gardens Brewing, LLC, whose manager is Matthew Webster, who is also the brewmaster for Tequesta Brewing Company.
The application is asking to locate a 5,773 square-foot brewery. Also being requested is an additional 692 square feet for outdoor seating to include 18 tables and 36 chairs, but with no service provided by the establishment. No additional building area is being proposed.
Last September, Palm Beach Gardens adopted an ordinance to allow breweries within city limits as conditional use proper, but Tequesta is requesting an amendment to the city's land development regulations to allow a brewery in that area.
When contacted, Webster couldn't talk much about the project until it progresses more, whether it might be a new facility or simply a brewpub, only saying, "There are a lot of hurdles to jump through." Understandably, business owners usually prefer not to talk about new projects
...More info on site
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USA, PA: Funk Brewing Company launches in Emmaus
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The Lehigh Valley’s newest brewery, Funk Brewing of Emmaus, hosted the tapping of their first beer on February 17, according to Theelvee.com. Kyle Funk, owner of the brewery, answered some questions about their new operation.
Joe Percoco, formerly a brewer at Weyerbacher in Easton and The Brew Works, will head up the brewing operations at Funk. Their core line-up of beer includes: Redolent, a 5.5% rye pale ale, Citrus, a 6.9% grapefruit and blood orange IPA, Efflorescence, a 5.3% saison brewed with hibiscus and meyer lemons, Penumbra, a 5% black saison, and Session, a 4.5% session IPA.
Their beers will be available at the brewery and will also be available throughout the area through Shangy’s distribution. Their brews will be sold on draft as well as in bottles. They will soon be giving weekend tours and sampling their beers at the brewery.
The launch party will feature Citrus, Efflorescence, and Redolent.
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USA, ND: Drekker Brewing Company coming to Fargo
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Four local beer enthusiasts have announced the opening of Drekker Brewing Company, a craft brewery that will soon be coming to Fargo. The Drekker Brewing Company name pays tribute to the Scandinavian heritage prominent in the region and dear to the founders. The word Drekker is a combination of the Old Norse words; drekka – to drink, drykkr – a draft drink, and drakkar – the feared viking dragon ship, Fmbeer.com reported on February 17.
“Drekker Brewing Company will create handcrafted beers of extraordinary quality and a unique taproom experience in which to share them,” said Mark Bjornstad, president and co-founder of Drekker Brewing Company.
Along with Bjornstad, Drekker Brewing Company is founded by Darin Montplaisir, Jesse Feigum, and Mason Montplaisir. All four are from the Fargo-Moorhead area and are very excited to make a positive impact on the local community.
“Craft breweries have a reputation for catalyzing community involvement and supporting local charities. We have some fun ideas planned for Fargo-Moorhead,” adds Bjornstad.
The company is having their brewhouse built by Bennett Forgeworks, a custom brewery fabrication company in Rigdway, CO. Along with the brewhouse, Drekker Brewing will use fermentation and conditioning tanks made by Portland Kettle Works in Portland, OR.
“We are committed
...More info on site
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World: EU malt exports increase 7% in July/November 2013
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As per International Grains Council (IGC), world malt exports in July/Nov 2013 were more or less unchanged for Argentina, Australia, Canada and the USA,
...More info on site
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World: Carlsberg’s Q4 earnings rise to 2.32 bln Danish kroner
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Carlsberg A/S, the world’s fourth-biggest brewer, reported on February 19 earnings that beat analyst estimates as the company gained market share in Russia. The
...More info on site
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Japan: Suntory Holdings reports huge rise in annual profits
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Suntory Holdings has seen its spirits sales rise in 2013 thanks to the rapid growth of the company’s RTD category.
The Japanese drinks group, which
...More info on site
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EU: Barley export licence bookings total 4.83 mln tons as of the beginning of February
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Barley export licence bookings of 4.83 mln tons as of the beginning of February point to record exports for the campaign, although bookings have
...More info on site
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Nigeria: Guinness Nigeria Plc’s half-year results impacted by continuing softness of beer market
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Guinness Nigeria Plc has recorded a turnover of N53 billion for the half year period ended 31 December 2013. The company results appeared to
...More info on site
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China: China's barley imports are forecast at 3 mln tons
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China’s beer sales have passed the 500 mln hl mark. The barley crop was damaged by bad weather, so that Chinese maltsters must import
...More info on site
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Australia: Asia driving the demand for Australian malting barley
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Increasing beer consumption in Asia is driving demand for Australian malting barley, ABC Local reported on February 18.
Australia's biggest malthouse, Joe White Maltings, produces
...More info on site
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The Czech Republic: Czech President against privatisation of Budejovicky Budvar
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Czech President Milos Zeman is against the potential privatisation of brewery Budejovicky Budvar as it might lead to deterioration of quality of its beer, Zeman said upon the start of his three-day visit to the Jihocesky region, southern Bohemia, on February 17.
The potential privatisation of Budvar would actually mean that Budejovicky Budvar will be seized over by Anheuser-Busch InBev, Zeman said.
"Budvar is the only national company in the territory of the Czech Republic and this measure was adopted in order to prevent privatisation by American concern Anheuser Busch," Zeman said.
Anheuser-Busch became part of the Anheuser Busch InBev concern in 2008.
If Budejovicky Budvar was really taken over be the Anheuser Busch group, the quality of its products would change markedly, according to Zeman.
The potential privatisation of Budvar would also have a negative impact on other industries. "It would weaken our traditional hop growing," Zeman added.
The portfolio of the Anheuser-Busch InBev concern comprises about 200 brands from all over the world, including the Budweiser brand.
Lawsuits over Budweiser with Anheuser-Busch InBev have been dragging since 1907. In 2000-2012, 173 court disputes and administrative proceedings were closed. Budejovicky Budvar won 120 cases and ten disputes ended in a settlement or in a draw.
The registration
...More info on site
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Chile: Compania Cervecerias Unidas earnings per share beat analysts’ estimate
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Compania Cervecerias Unidas S.A. (CCU) released its earnings data earlier in February. The company reported $0.60 earnings per share for the quarter, beating the
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Nigeria: Nigeria’s beer industry records decline in Q3 2013 but still is believed to have plenty of room for expansion
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Industry reports indicate that Nigeria’s beer industry recorded a marked decline in growth as in the third quarter of 2013, as pressure on household
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Japan: Suntory is no stranger to working against the odds
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As Suntory Holdings Ltd. figures out how best to take advantage of its $13.6 billion acquisition of U.S. whiskey maker Beam Inc., it’s worth remembering that the tenacious Japanese liquor giant is no stranger to new challenges, The Wall Street Journal reported on February 17.
Over the years, Suntory has made bold moves into whiskey and beer production when other companies in similar positions might have rested on their laurels by relying on established hit products.
The firm started out as a distributor of foreign-made wine in 1899, but soon pushed into wine production. Having secured its position as a major wine player domestically and with demand for its Akadama Port Wine at its height, Suntory then jumped into whiskey distilling.
Once its whiskey business had matured, it took on Japan’s heavyweight brewers, famously taking more than four decades of determination to turn a profit on its beer ops.
“Our whiskey business based on the pillars of our Suntory Old and Torys brands benefited from the tailwind of the postwar whiskey boom,” Keizo Saji, the founder’s second son and second president, recalled in his autobiography. “But we needed to inject vigor into the company’s employees and create an air of tension. So I decided
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India: UB Group loses some more shares in United Spirits
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Vijay Mallya’s UB Group lost about 0.34% stake in its liquor company United Spirits Ltd after lenders sold pledged shares in the company, Livemint reported on February 18.
United Breweries (Holdings) Ltd, the UB Group’s holding company, now owns 5.93% in United Spirits, down from 6.27% earlier.
Lenders who were pledged stock against money borrowed by UB Group companies sold some 500,000 United Spirits shares, according to a filing with BSE on February 18.
Mallya has been losing control of his group companies including United Spirits, Mangalore Chemicals and Fertilizers Ltd and United Breweries Ltd as lenders have lost confidence in the conglomerate’s ability to repay debt.
Both Mallya and United Spirits sold stake to British rival Diageo Plc last July to raise much-needed funds and reduce debt.
Diageo is now the majority shareholder in United Spirits and owns nearly 30% in India’s largest liquor company.
Shares of United Spirits were trading up 1.43% at Rs.2,348 apiece on February 18 afternoon.
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India: CMJ Breweries to brew and distribute Kaltenberg beer under license
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CMJ Breweries in association with Konig Ludwig International is introducing the authentic German beer “Kaltenberg” in India. As a part of the licensing agreement CMJ breweries Private Ltd. will manufacture and distribute the highly famous premium brand Pan India, Moneylife reported on February 18.
The first beer to be launched through this association will be Kaltenberg Royal Lager and it will be followed by Kaltenberg Royal Strong in the next few months. The beer will be positioned higher than the other premium beer much lower than imported ones. The product will be available across 1,000 outlets over the next few months in Maharashtra, Goa, Daman, West Bengal, Bihar, Jharkhand, Delhi, Karnataka, Tamil Nadu and Andhra Pradesh.
Kaltenberg will be brewed at its state of art CMJ brewery in Meghalaya aptly known as Scotland of the east. Only those breweries are allowed to brew Kaltenberg beers which guarantee compliance of all Royal Bavarian brewing standards and specification and CMJ brewery is one of them. The fully automated green field brewery has been set up at Byrnihat with a cost of about Rs 125 crores. CMJ brewery has also set up 100 KLPD state of art grain based Extra Neutral Alcohol (ENA)
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Ukraine: Beer production continues to fall
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Ukraine saw a further decline in beer production in January 2014: it was 14% down year-over-year, the Ukrpyvo Association reported on February 14.
"It's disastrous. We've never had such a decline in January year to year," Halyna Korenkova, Ukrpyvo Director General said.
In January 2014 breweries produced 1.21 mln hl of beer.
In 2013 beer consumption per capita fell to 56 litres from 68 litres in 2012. The share of beer in 2013 was 34% of alcohol consumption (measured in terms of absolute alcohol content), while it was 36-37% in 2012.
Korenkova says that the cause behind the stagnation of the beer industry is a number of factors, including a decline in households' purchasing capacity and poorly considered excise policy. She also pointed to a rise in beer imports to Ukraine, in both monetary and physical terms. Thus, under current conditions, it's difficult to forecast beer production in 2014, she said.
Almost all breweries saw a decline in beer output in January 2014. Some of them are ready either to halt production or partly close facilities if the market situation does not change by summer.
As was reported with reference to Ukrpyvo, in 2013 Ukraine cut beer output by 8%, to 27.64 mln hl.
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