Compania Cervecerias Unidas SA (CCU) reported October 06 its preliminary consolidated 3Q volumes.

In Chile, 3Q beer sales reached 976,138 hl (+12.5%). 2006 year to date beer sales increased by 15.4% to 3.211 million l. The company’s 3Q aggregated sales, including wine, nectars, mineral waters etc. hiked by 12.5% reaching 2.426 million l.

In Argentina, preliminary figures show that beer sales rose by 10.4% to 498.952 hl in 3Q 2006.Year to date sales amounted for 3.211 million l, 15.4% more year-on-year.

CCU plans to release its consolidated third quarter results by the end of October.

CCU is a diversified beverage company operating principally in Chile and Argentina. CCU is the largest Chilean brewer, the second-largest Argentine brewer, the third-largest Chilean soft drink producer, the second-largest Chilean wine producer, the largest Chilean mineral water producer, one of the largest Chilean pisco producer and also participates in the confectionery industry in Chile.

The Company has licensing and/or joint venture arrangements with Heineken Brouwerijen B.V., Anheuser-Busch Companies Inc., PepsiCo Inc., Paulaner Brauerei AG, Schweppes Holdings Limited and Watt’s Alimentos S.A.

Australian brewer Foster's Group Ltd. is looking to cut its product lines by up to 20 per cent to rejuvenate the business and ward off the risk of a takeover bid, the Australian Financial Review reported, The New Zealand Herald posted October 11.

"I would be disappointed if we didn't get it down by at least 10 per cent," Jamie Odell, Foster's Managing Director Australia, Asia and Pacific was quoted saying, adding that a move towards 20 per cent would be even better.

"I do hold to the view of fewer, bigger, better," he said.

Odell said he wanted a review of the business finished by Christmas, with the group's struggling wine portfolio expected to be the focus of product line cuts.

Foster's wine portfolio expanded to 50 brands following its acquisition of Southcorp last year. The company has already scaled back its international beer operations this year, raising more than AU$1 (US$1.14) billion from the sale of the Foster's brand in Europe and India and the sale of Asian breweries.

Foster's shares closed at AU$6.21 ($7.08) on October 10, having calmed since spiking up to a record high of AU$6.85 in mid-September on takeover speculation.

Obolon reported beer production reached 910,000 hl in September 2006, 20.1% more year-on-year, ProAgro-News released October 09.

2006 year-to-date beer production totaled 7.3 million hl, 23% more against the similar period of the last year. It is worth to mention that Obolon is Ukraine’s brewery which reported the fastest growing beer output and its position as a market leader tends to consolidate.

In September 2006, Obolon’s share in Ukraine’s beer production amounted for 38.9% (+5.5%) and its domestic market share also increased by 5.7% to 33.7%. In the same month, the brewery saw exports growing by 16.6%.

In the last 9 months of 2006, the domestic beer market has grown by 13-14% while Obolon’s sales increased by 26.1%. For the firs three quarters of 2006, Obolon’s share in the national beer output totaled 34.3% (+2.6%). In the same time, the company’s share on the domestic market reached 28.8% (+3.1%).

The brewery also managed to significantly improve exports which grew by 14% as of September 31, controlling 83.3% of Ukraine beer shipments.

Stressing the fact that EU has a deficit of 1 million t of malting barley of traditional quality specifications, analysts analyzed proposed October 02 some alternatives for the malting industry:

1. Imports from 3rd countries - very unlikely, as Australian barley is far too expensive for export to Europe, Canada cannot overcome their logistics problems, any surplus in South America would be small, and technical problems in the Ukraine will probably prevent large-scale exports from that country.

2. Usage of second grade barley: higher protein, lower full barley contents, lower germination and sprouted grains, barley of compromise and feed varieties, etc.

3. Reduction of malt production. This will be the case in those regions, where the crop is particularly poor and transport cost of barley from other EU areas excessively high. It will also be an automatic consequence of production stops in insolvent factories.

Soufflet has closed a small malthouse in Ebersmunster, Alsace, reports said October 02.

The EU Commission has rejected a Dutch subsidy of €7.5 million for the construction of Holland Malt's factory in Eemshaven.

The former ConAgra/Tiger Oats maltings in Canada, the U.S. and Australia are operating as United Malt Holdings since the management buy-out.

The case of the insolvent Weissheimer company continues unresolved.

The barley harvest is virtually finished in the Northern Hemisphere; only a few acres remain to be harvested in Canada, Siberia and North China, analysts released October 02.

The EU harvested a large crop of winter barley, also sufficient quantities of spring barley, but a large part is of disastrous quality.

The Ukraine reports a record barley crop of fair quality. Russia's harvest started well in the south, but ended with poor results in the northern and eastern parts of the grain belt.

China's statistics are underdeveloped, but it seems clear that this year's barley crop is very large, however, of variable quality.

The U.S. barley production is one of the smallest ever. Canada, on the other hand, has the best quality crop since years, albeit a smaller tonnage than last year.

Ukraine harvested 12 million t of barley, of which 11 million t of spring barley. Forecasts are that the country will export 5.2 million t of barley, all of it feed barley via the Black Sea ports. Quality of malting barley is good in the centre and east, but rain-damaged in the western part of the country, analyst said October 02. Local industries will be well supplied.

Russia must be divided in two parts. The south of the Black Soil belt harvested a fine crop, the north, however, and the lands stretching across the Volga into Siberia suffered from constant rains at harvest time, it is estimated that there 30 - 40 % of the malting barley are lost. Russia may look for imports at the end of the season.

Beer output is excellent in Russia and the Ukraine. Russia will remain an importer of some quantities of malt, as only one smaller capacity of 60.000 tons in Yaroslavl came on stream this year.