InBev announced August 9 that AmBev has closed the transaction with Beverage Associates Corp. ("BAC") to acquire all of BAC's remaining shares in Quinsa for a total purchase price of 1.25 billion U.S. dollars. AmBev's equity interest in Quinsa has increased from 56.72% to 91.18% of its total share capital.

AmBev expects the transaction to increase synergies between the operations of Quinsa and AmBev throughout Argentina, Uruguay, Paraguay, Bolivia and Chile. The transaction reflects AmBev's commitment to grow in these markets.

InBev is a publicly traded company based in Leuven, Belgium. The company's origins date back to 1366, and today it is the leading global brewer by volume. InBev's strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted external growth, and by putting consumers first. InBev has a portfolio of more than 200 brands, including Stella Artois®, Brahma®, Beck's®, Leffe® and Skol® - the third-largest selling beer brand in the world. InBev employs some 77,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2005, InBev realized 11.7 billion euro revenue.

Analyst said August 01 there is a lack of malting capacity in EU, at least temporary. The Grandes Malteries Modernes in Lille will stop production at the end of August, two Alba Domu factories in Hungary with an annual capacity of 110,000 tonnes have not produced malt since December of 2005, and the Weissheimer factories in Germany, capacity 255.000 tonnes, have run down their production since the new announcement of insolvency a few weeks ago.

The USDA reduced its barley production forecast from 4.46 to 4.13 million tonnes. Crops are being stressed by heat and drought, specifically in Montana and North Dakota, analysts explained August 01.

It is too warm and too dry in Western Canada as well. The CWB expects a crop of 10.15 million tonnes of barley for the Western Provinces and maximum 11 million tons for the whole country.

In view of stressed crops in Canada and apparent problems in the other malting barley countries of the world the Canadian Wheat Board has increased its PRO for 2row malting barley by CA$13.00 to 174.00 per ton.

Barley production is forecasted to decrease by 15%, due to lower area and yields, Agriculture and Agri-Food Canada released August 04 in its Grains and Oilseeds Outlook. Supply is expected to fall by 13%. Exports are forecast to decrease by 8%, as lower feed barley exports are only partially offset by higher exports of malting barley.

Despite lower exports and domestic feed use, carry-out stocks are forecast to fall significantly. The average off-Board feed barley price (No.1 CW, in-store Lethbridge) is forecast to increase by $20/t from 2005-06 (figures in CA$). The CWB PRO for No. 1 CW feed barley for Pool A in 2006-07 is $124/t, vs. $125/t for Pool A in 2005-06. The CWB PRO for SS2R malting barley is $174/t vs. $171/t for 2005-06, due to lower expected exportable supply in Australia and strong import demand from the US.