E-Malt.com Flash 25a. June 20

Colombia: SABMiller is moving closer to securing the $7 billion Bavaria beer deal

Brewing force SABMiller is close to securing a deal to buy Colombia's biggest brewer Bavaria for $7 billion, including debt, and hopes to wrap it up next month...more info

Russia: The consolidation of BBH in Russia will give Baltika 86.7% of Pikra

Baltika brewery, the Russian beer venture of Danish Carlsberg and British Scottish & Newcastle, plans to start consolidating Russian assets with its Kransnoyarsk brewer Pikra...more info

Brazil: The creation of Inbev approved by Brazilian government antitrust division

The creation of the world's largest brewery Inbev was unanimously approved on June 15 by Brazilian government antitrust division (Cade), Brazil’s Agência Estado cited a representative of the division at the Justice Ministry.

“The merger between South America's largest brewery Ambev and Belgian's Interbrew through a stock exchange - which was approved by stockholders in August last year - didn't represent risks to market competition in Brazil,” said Muniz Prado, Cade}s head counsel for the case.

Ambev leads the Brazilian beer market with 67.3% market share and a range of 24 different beer brands and soft drinks. Meanwhile, Interbrew has 173 brands on the world market, but most of these brands are little-known on the Brazilian market, said Prado. That means that the new company would still have to mount huge marketing campaigns to promote Interbrew's brands - just as if it were launching new brands on the marketplace, he added.

Rival Brazilian brewery Schincariol - which contested the merger between Ambev and Interbrew - was not present at today's session.

South Africa: SABMiller launches Peroni Nastro Azzurro in South Africa

Global brewing giant, SABMiller, announced on June 22 that it is launching its premium Italian beer brand, Peroni Nastro Azzurro, in South Africa. Peroni Nastro Azzurro will be initially available in selected outlets in the high volume Gauteng area, with the intention of rolling the brand out nationally in future.

London-listed SABMiller, formed from South African Breweries' takeover in 2002 of the second biggest U.S. brewer Miller, completed its takeover of Italy's Birra Peroni when it bought out minority shareholdings in February this year.

“The release of Peroni Nastro Azzurro into South Africa is part of SABMiller’s international expansion strategy for the brand, following the acquisition of Italian brewer Birra Peroni in 2003. Peroni Nastro Azzurro has recently been launched by SABMiller in Romania and re-launched in the US and UK,” SABMiller said.

Established in 1846 with the opening of its first brewery, Birra Peroni has grown both within Italy and internationally to become a symbol of quality and success worldwide. Peroni Nastro Azzurro which was first brewed in 1963, is Birra Peroni’s premium export brand and the biggest selling Italian beer outside Italy, where it is now available in more than 38 countries. ...more info

China: Tsingtao Brewery Taiwan starts production

A brewing plant in Taiwan built by Chinese beer giant Tsingtao Brewery Co. and Taiwanese drink manufacturer Sanyo Whisbih Group has begun production...more info

Barley News

Australia: ABB Grain Ltd announced its final pool distribution for 2003/04 barley

ABB Grain Ltd announced on June 21 it will finalise its 2003/04 barley pools on 23 June 2005, providing around A$49 million to growers across the country...more info

Hops News

USA: Proposal to limit sales of Northwest hops is to be halted

The U.S. Department of Agriculture announced on June 20 it would halt consideration of a proposal to limit the sale of hops that grow in the Pacific Northwest and are sold to brewers to give beer its bitter taste, according to Associated Press.

A coalition of hops growers had asked the agency to establish a federal marketing agreement to regulate the quantity of hops that could be brought to market by growers. It was an attempt to boost prices and compensate for an oversupply of the alpha acid extracted from hops and used to flavor beer. Such supply-limiting curbs on agricultural production go into effect after a majority of growers approve the proposal through a referendum.

But after more than two years of deliberations, USDA's Agricultural Marketing Services said it had ended the marketing order proceedings prior to putting the issue to a vote. Agency officials determined there was no demonstrated need for limits on the amount of U.S.-produced hops released into the world market and that there would be no positive economic benefit on the hop industry from such an order.

"It's up to the advocates for the order to make their case, and on several levels, the case failed to reflect convincing industry support," said George Chartier, a spokesman for Agricultural Marketing Services in Washington, D.C. ...more info