USA: InBev USA sells Rolling Rock brands to Anheuser Busch

InBev USA , a subsidiary of InBev and Anheuser-Busch jointly announced May 19 the sale of the Rolling Rock family of brands. The purchase price was $82 million dollars (USD) for the U.S. and worldwide rights to Rolling Rock and Rock Green Light.

Anheuser-Busch acquires the Rolling Rock brands and recipes with this transaction and will now start to work with the existing Rolling Rock wholesaler network and Anheuser-Busch wholesalers to define plans for the future. Anheuser‑Busch will begin brewing Rolling Rock and Rock Green Light in August using the brands’ same time-honoured recipes, maintaining Rolling Rock’s craftsmanship and heritage that its fans expect and appreciate. Internationally, Rolling Rock will continue to be sold in the United Kingdom and Ireland.

The decision to sell the Rolling Rock brands was based on InBev’s strategic approach to the U.S. market, which is to focus on the high-growth import brands in its portfolio. InBev’s sales and marketing efforts are aimed at maximizing the potential of its leading imported beers, including Stella Artois, Bass Pale Ale, Beck’s, Brahma and Labatt Blue, and on its strength as the U.S. leader in imported draught beer.

InBev plans to sell its brewery in Latrobe, Penn., separately to focus ... More Info

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Sweden & USA: Anheuser-Busch blocks Czech brewer from using Budweiser in Sweden

The Supreme Court of Sweden found no reason to hear an appeal filed by Czech brewer Budejovicky Budvar, ending a seven-year-old trademark dispute with Anheuser-Busch, the American brewer released May 16.

The decision preserves the lower court ruling providing for Anheuser-Busch's exclusive "Budweiser" trademark rights in Sweden.

In January, the Svea Court of Appeals, guided by a 2005 World Trade Organization panel's decision, ruled that geographic indications protected in Europe cannot be used in translation if they interfere with prior or existing trademarks. The court ordered Budejovicky Budvar to stop using "Budweiser Budvar" on its labels, packaging and advertising.

"Since Anheuser-Busch first began brewing Budweiser in 1876, we have made significant investments in developing the brand throughout the world," said Stephen J. Burrows, president and chief executive officer, Anheuser-Busch International, Inc.

"The final outcome in Sweden is significant because it recognizes Anheuser-Busch as the rightful owner of the Budweiser name, one we first registered 17 years before Budejovicky Budvar was founded."

The trademark dispute in Sweden began in 1999 after Anheuser-Busch successfully registered "Budweiser." Anheuser-Busch has national registrations for "Budweiser" or "Bud" in 21 of 25 European Union countries and sells 31 percent of its international beer volume in that European region.

"This dispute ... More Info

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Australia & New Zealand: Lion Nathan announces record interim result

Lion Nathan Ltd., Australia's second- biggest brewer, said May 18 its first-half earnings rose 10 percent on demand for more-profitable premium beers such as Heineken and Tooheys Extra Dry.

Net income rose to A$148.9 million ($113 million), or 27.9 cents a share, in the six months ended March 31 from A$135.4 million, or 25.3 cents a year earlier, Sydney-based Lion Nathan said in a statement.

Chief Executive Officer Rob Murray will spend more promoting beers such as Beck's and XXXX Gold and overhauling plants to cut costs as growth in the beer market slows and the cost of ingredients such as sugar rises. The shares rose after the company said it will return A$380 million to investors through a buyback and special dividend.

“They've got to support their core brands in Australia and promote their strengths to maintain growth,'' said Grant Saligari, an analyst at Commonwealth Securities Ltd. in Sydney, who rates Lion Nathan “accumulate.'' “The result was solid and the capital management surprise has really enhanced it.''

Lion Nathan shares rose 2.6 percent to A$8.41 at the 4:15 p.m. market close in Sydney May 18, extending this year's gain to 10 percent. On the same day, the benchmark S&P/ASX ... More Info

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UK & South Africa: SABMiller plc releases preliminary IFRS results

SABMiller plc announced May 18 its preliminary (unaudited) IFRS results for the year to 31 March 2006. The group highlighted a US $15.307 million revenue, which reflects a 19% year-to-year increment from US $12.901 million in 2005. The EBITA is situated at US $2.941 million (+23%). Profit before tax (including net exceptional credits of US $415 million in prior year) amounted US $2.453 million (+4%).

Group lager volumes are up 19% to 176 million hectolitres (hl), with an organic growth of 5%

“This was another year of good growth in volumes, margins and earnings reflecting the growth profile that the group has built over the years. Our track record reflects well-judged acquisitions and investments, successful integration and subsequent operational improvements,” chairman Meyer Kahn stated.

“It was also a year of strategic progress for the group as it completed the initial turnaround of Miller notwithstanding the challenging market conditions. The group has continued to improve its access to long term growth markets, establishing a major new platform in South America through the Bavaria transaction, whilst making further significant investments in China, India and Vietnam.

SABMiller now has a stronger global portfolio of businesses and brands. Looking forward a key focus will be on ... More Info

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Russia: Ochakovo increases exports by 16% in the first quarter 2006

Moscow's Ochakovo Brewery, one of the major producers of beer and other beverages in Russia, exported almost $400,000 worth of products in the first quarter of 2006, up 16.2% year- on-year, Interfax communicated May 17.

The growth is mainly attributable to an increase in sales of Ochakovo kvas (a lightly fermented traditional beverage) and Kutskova vodka in the United States. The company began selling kvas in aluminum cans in the U.S. in September 2005 and managed to sell more than 15,000 liters of kvas in the first quarter. As a result, Ochakovo's partner in the U.S. extended its contract with Ochakovo and agreed to begin distributing kvas in two-liter bottles. This could result in more than 300,000 liters of kvas being sold in so-called Russian stores in the U.S. by the end of 2006, the company said.

Sales of Kutskova vodka, which appeared on the North American market five years ago, almost doubled in the first quarter of 2006. The Kutskova bottle was specially redesigned for the U.S. market this year and the vodka is now sold in 1.75-liter bottles.

Beer accounted for 73% of overall exports in the first quarter, Ochakovo kvas - 14.5% and strong and low-alcoholic drinks - 12.5%.

In the ... More Info

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Thailand: Thai beer brewer launches up to 1.1 billion dollar IPO in Singapore

Brewer Thai Beverage PCL, whose plan for a share sale at home in Bangkok was blocked by buddhist monks, on May 19 launched a $1.1 billion Singapore IPO which could make it Southeast Asia's biggest listed brewer, Reuters reports.

Thai Beverage, whose Beer Chang and Mekhong whisky are top sellers in Thailand, said it will stick to its initial price range of S$0.26-S$0.36 per share, which some say is on the pricey side given current market conditions.

This week's global share price slide led ING Investment Management Asia Pacific to scrap a planned equity fund IPO while Pacific Shipping Trust revised down its IPO price.

Thai Beverage is offering 4.89 billion shares, which would value the IPO at as much as S$1.76 billion ($1.12 billion) and make it Singapore's biggest IPO since the S$4.2 billion ($2.68 billion) flotation of Singapore Telecommunications Ltd. , Southeast Asia's largest phone firm, in 1993.

Thai Beverage has 60 percent of the Thai beer market and 74 percent of the spirits market in the country of 63 million.

It wants to add to its three breweries and 16 distilleries to drive further sales in neighbouring Cambodia and Laos.

Ueychai Tantha-Obhas, Thai Beverage senior vice president, ... More Info

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USA: Barley supply is expected to be down from last year

USA barley production will decrease 7 Million bushels (about 152.4 thousand metric t) in 2006/07, according to the USDA Economic Research Service “Feed Outlook” released May 16.

The 2006/07 barley crop is projected at 205 million bushels (about 5,433 thousand metric t) compared with 212 million (about 4,615.7 thousand metric t) the previous year. This decrease comes from a 69,000-acre decrease in harvested area, which is projected at 3.2 million acres in 2006/07. A 0.7-bushel per-acre yield decrease, now projected at 64.1 bushels per acre, also contributes to the decline.

Forecasted barley planted area is based on the March Prospective Plantings report, and harvested area comes from the 2000-2005 average relationship between harvested and planted area (excluding 2002). Barley yield comes from 1960-2005 trend yields, adjusted for rounding.

Barley beginning stocks are 105 million bushels, down from 128 million bushels in 2005/06. Imports for 2006/07 are forecast at 15 million bushels, up 10 million from a year earlier. Total supply is 325 million bushels, down from 345 million bushels.

On the use side, feed and residual use, and exports are projected to decrease in 2006/07. Food, seed, and industrial use is unchanged at 155 million bushels, as domestic beer demand is thought to ... More Info

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Abstract:
Storage conditions have a major influence on the rate at which dormancy breakdown occurs. The rate of breakdown depends mainly on grain moisture content, storage temperature, storage time and the characteristics of individual batches of barley. Data presented in this paper are a significant addition to the existing knowledge on post harvest maturation of Australian malting barley. Germination of Gairdner and Sloop increased at low moisture content (mc) at storage temperatures above 20oC, as water sensitivity progressively broke down. In contrast, Grimmett germination declined under similar conditions. Stirling was very robust and maintained its germination even under high temperature storage, while Tallon had to be stored below 25°C to prevent loss in barley quality. Samples with high water sensitivity and dormancy were less vulnerable to germination loss. Dormancy and water sensitivity could be overcome by matching storage conditions and barley characteristics. Gairdner, Sloop and Stirling, all samples with some level of dormancy and water sensitivity, showed improved maltability after storage, while Tallon and Grimmett, samples with high pre-storage germination, decreased in maltability under most storage conditions. Longer term storage under mild conditions generally resulted in better malting outcomes. Storage affected Kohlbach index, wort b-glucan, diastatic power and apparent attenuation limit of malt. Changes in germination and maltability need to be considered in combination to develop optimum storage strategies for breaking dormancy and water sensitivity. In dormant grain, enzyme activity of a-amylase and b-glucanase changed with storage, while b-amylase measurements showed no clear trends. Enzyme activity decreased at higher mc and temperatures concurrent with germination loss. Changes in enzyme activity were highly sample-dependent. An understanding of the vulnerability of particular cultivars to damage in storage will assist in increasing and preserving value. Barley with pronounced levels of dormancy and/or water sensitivity can be safely stored at 25° to 30°C for short periods to increase germination. Care must be taken to monitor germination during storage, and moisture content should be kept at or below 12%. Dormant barley stored at low temperatures may not reach malting quality, even over a 12 month period. Key Words: Storage, germination, malting, amylase, glucanase, dormancy, water sensitivity
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