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Newsletter Summary

Currency rates
Equities of largest breweries
Market prices change trend
Top industry news
Brewery news
Malt news
Barley news
More news
Theoretical malt prices
Malting barley prices
Barley price evolution
Table of the week
Graph of the week
Agenda
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Average market prices
Change trend

16 Feb - 17 Feb 2006
Crop 2005
2rs Barley €114.00-116.00   
6rw Barley €102.00-104.00   
2rs Malt €242.00-244.00   
6rw Malt €226.50-228.50   
Crop 2006
2rs Barley €117.00-119.00   
6rw Barley €104.00-106.00   
2rs Malt €242.50-244.50   
6rw Malt €226.50-228.50   

Note: Just click on the price link and you will be led to our Market Price History. Average barley market prices are French and are estimated on FOB Creil basis.
The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Other e-malt.com newsletters

Last five newsletters
See this Newsletter!
Newsletter 07a, 2006

See this Newsletter!
Newsletter 06b, 2006

See this Newsletter!
Newsletter 06a, 2006

See this Newsletter!
Newsletter 05b, 2006

See this Newsletter!
Newsletter 05a, 2006



Market price evolutions

The evolution of market prices for barley and malt, which are periodically issued with e-malt.com newsletters are published on e-malt.com site in Market Prices section. Just click here!


Available market price evolutions


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Last five graphs



The graphs are updated from time to time. Just see the updates online on e-malt.com site !


All e-malt.com tables are published in e-malt.com Statistics section. The Statistics section includes Barley statistics, Malt statistics and Beer statistics. The tables related to barley are published in Barley Statistics section, the tables related to malt in Malt Statistics section and the tables related to beer in Beer Statistics section.


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E-malt.com Newsletter 07b
February 16 - February 17, 2006

Quote of the week

"Beer is a jumper, the teeth are its stairs."
Sumerian Proverb

Currency Rates
Base Currency: Euro, EUR
on 17-February-2006

1 EUR = 1.188 USD
1 EUR = 0.6838 GBP
1 EUR = 1.3762 CAD
1 EUR = 1.6097 AUD
1 EUR = 140.088 JPY
1 EUR = 2.5257 BRL
1 EUR = 33.5404 RUB
1 EUR = 9.5644 CNY
Base Currency: US Dollar
on 17-February-2006

1 USD = 0.8418 EUR
1 USD = 0.5756 GBP
1 USD = 1.1584 CAD
1 USD = 1.355 AUD
1 USD = 117.927 JPY
1 USD = 2.1259 BRL
1 USD = 28.2317 RUB
1 USD = 8.0506 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Russia: In 2005 Baltika Breweries sold a record volume of beer in the Russian history... Click here

USA: Imported beer is expected by USDA to amount to US$3.5 billion in 2006... Click here

Romania: Largest investment by URSUS Breweries - exceeds US$ 30 million... Click here

France: Brasseries Kronenbourg is planning restructuring... Click here

Japan: Three major Japanese brewers saw their group sales decline in 2005... Click here

Albania & Kosova: Birra Tirana won the tender for beer factory “Birra Peja”... Click here

EU: The latest statistics figures of malt production in major malting countries... Click here

EU: Spring barley plantings are forecast to be down in the main malting barley countries... Click here

More News
USA: Craft beer volume increased by 9 % for the second year ... More Info

China: Yao Ming might become beer trademark ... More Info

UK: Smoking ban to result in 'smoke-easy' investment for Kent Brewer's Pubs ... More Info

South Africa: Beer drinkers will pay 5% more for one can of beer ... More Info

Japan: Kirin Brewery is planning reorganization ... More Info

Canada: During the past decade, the annual value of imported beer has increased five-fold ... More Info

North America: Barley situation as of 30 Jan. 2006 ... More Info

Canada: Geoff Molson named as vice-president in charge of customer marketing and events for Quebec ... More Info

UK: Interim results of Diageo plc for the six months ended 31 December 2005 ... More Info

Japan: Sapporo Holdings 2005 net profit dropped 22 % on falling sales of beer, happoshu ... More Info

Russia: Baltika investment in development decreased by 43% in 2005 ... More Info

USA: Haxby replaces Lewis as central Montana barley yield standard ... More Info

Australia: New management appointments at ABB Grain ... More Info

Botswana: The law will reduce the number of hours that drinkers can enjoy a beer ... More Info

USA: Saint Arnold Brewing Company outpaces growth of national craft brewing segment ... More Info

New Zealand: John Richardson appointed as General Manager Brewing Operations DB Breweries ... More Info

Finland: Lager 4.1 Taytelainen Kevytolut granted gluten-free product certification ... More Info

Japan: Kirin Brewery expects 4.7 % growth in 2006 profit ... More Info

UK: Tiger Beer plans GBP 5 mln investment to up market share ... More Info

UK: Essex Pub voted ‘best in Britain for the second time ... More Info



Brewery News
Russia: In 2005 Baltika Breweries sold a record volume of beer in the Russian history

Baltika Breweries have summed up on February 15 its operations in 2005. Under the growing competition and active consolidation of the market not only did Baltika retain its leading position but also strengthened it considerably, having brewed almost one quarter of the Russian beer.

In 2005 Baltika Breweries market share amounted to 24,1% (in 2004 - 23%), sales volume in the reporting period grew by 13%. In total, 225,4 mln. decalitres of production were sold, including 224,4 mln. decalitres of beer - a record figure of annual sales in the history of the Russian brewing.

The Russian beer market increased by 6% in 2005, keeping its deceleration trend. Almost half of the market increase was contributed by Baltika Breweries, whose growth rate was two times above the market.

Increase of sales of the flagship brand of the company - “Baltika”, - was 11,5% in 2005 compared to 2004. Key sub-brands have displayed positive dynamics - sales of “Baltika #7 Export”, leader of premium segment, increased by 29%, “Baltika #5 Gold” - by 55%. “Baltika #3 Classical” retained positive dynamics and is still leading in the biggest, mainstream segment.

“Arsenalnoye”, second brand in ...
More Info


USA: Imported beer is expected by USDA to amount to US$3.5 billion in 2006

Imported malt beer is expected by USDA to amount to US$3.5 billion in 2006 compared to November forecast of $3.3 billion. These new forecasts are based on early indications of import growth and on historical seasonal patterns.

In 2005 fiscal year imported malt beer amounted US$ 2.99 billion. During October-December 2005 malt beer imports amounted US$ 0.744 billion compared to US$ 0.641 billion in October-December 2004.

Beer imports are sensitive to weather changes, USDA commented. At a time when large U.S. brewers have sought to counteract the slide in domestic beer sales by cutting prices, younger consumers and aging baby boomers continue to increase purchases of premium-priced beer, wine, and spirits.

USDA said that fiscal 2006 agricultural imports are raised to a record $63.5 billion, up 10 percent from last year, continuing the accelerated pace which began in 2003. Strong demand for fresh fruits and vegetables, sugar, cocoa, coffee, beer, and wine drive imports. Steady gains for many other products are also expected. The EU-25, Canada, Mexico, Australia, and Brazil remain the top suppliers.


Romania: Largest investment by URSUS Breweries - exceeds US$ 30 million

URSUS Breweries, a subsidiary of SABMiller plc, announced on February 15 that it continues to invest in the expansion and modernisation of its Buzau Brewery by means of an investment plan exceeding US$ 30 million. URSUS Breweries is planning to increase the weekly production capacity of the Buzau Brewery by 75%.

This year’s investment project consists of the installation of a new brew house and the expansion of beer filtration and storage capacities in Buzau. The current bottling line will be replaced with a new line, with a capacity rate of 45,000 bottles/h. The construction work and installation of the new equipment requires the demolition of some old buildings, while others will be refurbished.

„Besides the expansion of the production capacity, this important investment project will facilitate future expansions and competitive costs, which will lead to the alignment of the operations of URSUS Breweries in Buzau to SABMiller's standards”, declared Cristian Matei, the manager of the Buzau brewery.

The brewery in Buzau was the first acquisition by SABMiller plc in Romania in 1996 and has an annual capacity of 800,000 hl and approximately 300 employees. Up until now, total investments made by URSUS Breweries in the Buzau brewery ...
More Info


France: Brasseries Kronenbourg is planning restructuring

Scottish & Newcastle plc announced on February 16 that its French subsidiary, Brasseries Kronenbourg, has begun consultation with its workforce over the proposed restructuring of its brewing business.

The project includes:
-- The proposed sale of Champigneulles brewery near Nancy;
-- Focus on premium brands and operations at Obernai brewery near Strasbourg

Scottish & Newcastle said: “An update on the consultation process will be provided in due course.”

Champigneulles has about 350 employees and capacity for 3.2 million hectolitres.

Obernai brewery employs around 650 and has the capacity to produce 6.5 million hectolitres, has one keg line, eight bottling lines, and two canning lines. It produces the French unit's premier brands, including Kronenbourg 1664, Fosters and Carlsberg.

S&N divided its beer business into four parts in May 2004. The UK business Scottish Courage, headed by John Dunsmore, remained unchanged, and three new international divisions – France, Asia and greater Europe and the US – were created.

Brasseries Kronenbourg is the leading brewer in France with a market share of around 40%. S&N acquired it after entering into a partnership with Danone in 2000. Under this arrangement, S&N took management control and Danone had a "put" option to sell its stake in the partnership to S&N ...
More Info


Japan: Three major Japanese brewers saw their group sales decline in 2005

Three major Japanese brewers saw their group sales decline in 2005 as their happoshu low-malt beers lost popularity following the introduction of new beer-like beverages, according to their sales figures released by Friday, 17 February 2006, Kyodo News communicated.

Consolidated sales fell 1.4 percent from the previous year to 1.63 trillion yen at Kirin Brewery Co., 1.0 percent to 1.43 trillion yen at Asahi Breweries Ltd. and 8.3 percent to 453.67 billion yen at Sapporo Holdings Ltd.

The volume of happoshu sales plunged by more than 20 percent at the three brewers, affected by brisk sales of so-called "third-category" beer products.

Kirin and Asahi joined the third-category beer market last April after Sapporo created it. Kirin took the top share of the market as sales exceeded its target by 40 percent, while Asahi failed to achieve its sales target.

Kirin took advantage of its strong third-category beer sales and smooth drug division sales to boost group operating profit 2.1 percent to a record 111.71 billion yen.

But Asahi and Sapporo posted operating profit drops due to sluggish sales of regular beer and happoshu. ADV

The three brewers expect to increase both sales and profit in 2006. Kirin projects group net ...
More Info


Albania & Kosova: Birra Tirana won the tender for beer factory “Birra Peja”

Companies from Albania and Kosova were very active during the last tender organized by the Kosova Trust Agency (KTA) for the sale of the Beer factory “Birra Peja” and Grand Hotel, the KTA announced, AENews communicated on February 16.

Albanian company Birra Malto sh.a., owner of the Birra Tirana brand (Tirana Beer), offered EUR 5.2 million for the Birra Peja factory. The offer included also a commitment to invest another EUR 12 million in the future.

Birra Tirana won the tender together with the Kosovar businessman, Mr. Ekrem Lluka, whom, in cooperation with his staff and managers of the Birra Peja factory, had offered EUR 3.5 million. These are preliminary results, however. The final decision will be made at a latter time.

According to the KTA announcement, the Albanian businessman Mr. Shyqyri Duraku, president of the oil company Eurodrini, offered EUR 6 million as well as committed to invest another EUR 22 million for Hotel Grand which is Kosova’s capital most important hotel.

Malt News
EU: The latest statistics figures of malt production in major malting countries

Germany: German malt production dropped from 2.028 million tonnes in 2003/04 to 1.940 million tonnes in 2004/05. In January/ October 2005 production was 1.68 million tonnes, converted to a full calendar year it would be 1.8 million tonnes.

France: French malt production as per ONIC was 570,000 tonnes in July/November 2005. Forecast for the crop year is 1.320 million tonnes, only 25,000 tonnes less than in 2004/05.

U.K.: Defra reports malt production of 536,000 tonnes during July 1 – November 26, 2005. Estimate for the crop year is 1.375 million tonnes, down 3 % from 2004/05, but almost 10 % from the 2000/2005 average.

Barley News
EU: Spring barley plantings are forecast to be down in the main malting barley countries

Spring barley plantings were foreseen by analysts to be down in all essential malting barley countries in 2006, but that did not take into account possible changes, when fields of destroyed winter grains must be replanted:

(In thousand ha, last year in brackets):
France 530 (565); Denmark 550 (569); Germany 560 (606); Sweden 340 (369); U.K. 530 (558); Czech Republic 370 (397).

Supplies should still be sufficient in 2006, provided a normal planting and growing season. But farmers become more disenchanted every year with their malting barley sales, and the industry is certainly running a risk that the price spiral may turn around one day from the traditional pressure of "supermarket chains to brewers to maltsters to farmers" into the opposite direction.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.1880 February 17, 2006 
 Crop year   2005   2006 
 Parity   FOB Creil   FOB Creil 
 Position   July 2005   July 2006 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  117.00  139.00  119.00  141.50 
2RS  Prestige  115.00  137.00  118.00  140.50 
2RS  Cellar  115.00  137.00  118.00  140.50 
2RS  Sebastien  114.00  135.50  117.50  139.50 
2RS  Astoria  113.50  135.00  116.00  138.00 
2RS  Cork   114.50  136.50  117.00  139.00 
6RW  Esterel   103.00  122.50  105.00  125.00 
Theoretical malt prices.

  EURO = USD 1.1880 February 17, 2006 
Crop year  2005 
Parity  FOB Antwerp 
Position  Feb 2006-Sept 2006 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  246.00  292.00  260.00  309.00  260.50  309.00  262.50  312.00 
2RS  Prestige  243.50  289.00  257.50  306.00  257.50  306.50  260.50  309.00 
2RS  Cellar  243.50  289.00  257.50  306.00  257.50  306.50  260.50  309.00 
2RS  Sebastien  242.00  287.50  256.50  304.50  256.50  304.50  259.00  307.50 
2RS  Astoria  241.50  287.00  256.00  304.00  256.00  304.00  258.50  307.00 
2RS  Cork   242.50  288.50  257.00  305.50  257.00  305.50  259.50  308.50 
2RS   Average price  243.00  289.00  257.50  306.00  257.50  306.00  260.00  309.00 
6RW  Esterel   227.50  271.50  243.00  288.50  243.00  288.50  245.50  291.50 
Asia Malt 70/30  239.00  283.50  253.00  300.50  253.50  300.50  255.50  303.50 
**  Asia Malt 50/50  236.00  280.50  250.50  297.50  250.50  297.50  252.50  300.00 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2006 are available on site www.e-malt.com/MarketPrices

Barley Prices Evolution

Source: ABARE, 14 February 2006

Table of the week

USA Craft Beer Stats as of Dec. 1, 2005

  U.S. Breweries Operating in 2005: 
  Regional Specialty Breweries  57 
  Microbreweries  350 
  Brewpubs  927 
  Total Craft Breweries  1,334 
  Large Breweries  21 
  Regional Breweries  13 
  Total U.S. Breweries  1,368 
 
  2005 U.S. Openings ytd: 
  brewpubs  31 
  microbreweries  18 
 
  2005 U.S. Closings ytd: 
  brewpubs  47 
  microbreweries 
Newsletter SummaryTop
Graph of the week


Agenda

February 2006:
Food, Hotel & Tourism Bali 2006 The 6th International Exhibition
FRUCHTWELT BODENSEE International Trade Fair for Fruit, Berries, Hops and Destillation
World Brewing Academy International Diploma Conducted at the facilities of Siebel Institute...
ProdEXPO-2006 XIV International Fair-Exhibition.
AHA Membership Rally - New Belgium Brewing Co
August Schell Brewings' Annual Bock Fest...
Sarasota Rhythm & Brews
Florida's best beer festival
GrainWorld 2006

March 2006:
China Drinktec - China International Exhibition on Beverage, Brewery and Wine Technology
Florida Brewers Guild Beer Festival. Beerfest 2006
Nightclub & Bar/Beverage Retailer Beverage & Food Convention and Trade Show
The 10th China International Exhibition on Beverage, Brewery and Wine Technology
Ale Street News' Ultimate Belgian Tasting
WORLD GRAIN CONFERENCE BANGKOK.
WorldFood / AgroWorld Uzbekistan International Exhibition 'Food Industry and Agriculture.
Brew and Beverage Industry - Beer Auction International Trade Fair

April 2006:
2006 Australian International Beer Awards
Helsinki Beer Festival 2006
Craft Brewers Conference & BrewExpo America 2006
BEER. WINES & DRINKS International Beer, Wine and Spirits Manufacturing Exhibition. Belarus
Wine & Spirits Asia International Exhibition of Wine, Spirits and Beer
Hevelius International Beer Festival - Beverages and Gastronomy Devices Fair


More events are available on site e-malt.com
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