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• Interbrew has announced its intentions to take a controlling stake in AmBev, creating one of the largest brewers in the world. For both companies, the main driver for the tie-up ...more info



• Brazil: Companhia de Bebidas das Américas – AmBev, the world’s fifth largest brewer and Brazil’s leading beverage company, announced that its Board of Directors approved on March 22 a new ...more info



• Australia’s largest brewers, Foster’s and Lion Nathan, have shifted their marketing focus by spending more money promoting brands for the under-30’s market ...more info



• Brazil: After advertising Schincariol’s NovaSchin brand, the popular Brazilian singer Zeca Pagodinho has defected to AmBev and now endorses its Brahma brand ...more info



• Spain: The Spanish beer maker, Cruzcampo, owned by Heineken, announced last week a 7% rise in sales for 2003 versus 2002 ...more info



• UK: The wider availability of new technology such as home entertainment systems and broadband Internet connections is encouraging consumers to stay at home rather than go out to pubs or ...more info



• Belgian brewer Interbrew has had both its rating upped by Rabo Securities to “outperform” from “neutral.” ...more info



• Philippines: Kirin Brewery Co. will transfer a technology for the production of large PET bottles for beer to Philippine brewer San Miguel Corp ...more info



• South Korea's Finance and Economy Ministry said on March 22 that it intends to lower the taxes on beer ...more info



• Denmark: Carlsberg A/S, one of the world’s leading international brewers, announced on March 22 a rights issue with gross proceeds of DKK 3,423,528,000 ...more info



• Canada: Ontario, British Columbia and Alberta are the three "wettest" provinces in the country for alcohol consumption, a new study shows. And beer remains Canadians' favourite drink ...more info

Brewery News

China's fourth-largest beer maker, Harbin Brewery Group Ltd, said on March 23 the Harbin city government would sell its 29.07 % stake in the beer maker for HK$947.38 million (US$121.46 million). The Harbin city government has agreed to sell 291.5 million Harbin Brewery shares to an independent buyer for HK$3.25 each, a 19 % discount to their closing price of HK$4.00 on March 18, according to Dow Jones. The buyer is Global Conduit Holdings Ltd., which is owned by a group of investors none of whom owns more than 20% of Global Conduit, Harbin Brewery said in a legal notice. Global Conduit's investors are independent of London-based SABMiller PLC (SAB.JO), Harbin Brewery's biggest shareholder with a 95% stake in a holding company that owns 29.41% of the beer maker, the notice said. Harbin Brewery is the fourth-biggest brewery in China, the world's biggest beer market where annual consumption is estimated at about 250 million hectoliters with strong growth. The Harbin municipal government gave no reason for selling its Harbin Brewery stake. Because the shareholding is less than 30%, there is no requirement to make a general offer to buy the rest of the company under Hong Kong stock exchange listing rules. SABMiller Plc, the world's second-biggest brewery, has a 29.4 % stake in Harbin Brewery. (US$1=HK$7.8)

Danish beer maker, Carlsberg A/S, announced on 23 March 2004 that 57.02% of Holsten's shareholders accepted Carlsberg’s takeover offer. Following the closing of the public takeover offer to all Holsten-Brauerei’s shareholders on 18 March 2004, Carlsberg has secured a total shareholding of 97.55% in Holsten-Brauerei, including the shares, which Carlsberg previously agreed to acquire. 6% of the secured shareholding of Holsten is subject to a call option, which Carlsberg might exercise at a later stage. The title to 91.55% of the share capital is expected to be transferred to Carlsberg on 25 March 2004. By obtaining the above shareholding, the last of the conditions precedent for Carlsberg’s offer to acquire Holsten-Brauerei has been fulfilled. Carlsberg will now proceed with the acquisition of the Holsten business as planned. The result of the public offer showed that a total of 7,839,838 Holsten shares were tendered. The payment for these shares totals approximately € 298 million is expected to be effected on 25 March 2004. Any Holsten shareholders who did not tender their shares during the first offer period will be given the chance to sell their shares during the mandatory two weeks extended offer period starting 24 March and closing 7 April 2004. During the extended period the price remains € 38 per share.

One of the world’s largest brewer, SABMiller plc, issued on March 22 the following update on trading for the 11 months to February 2004, as the group's financial year nears completion. Organic lager volume growth continues, increasing by just over 3% for the 11 months to February 2004, and the group's operating performance remains strong. Miller sales to retailers ("STRs") for the 11 months are down 2.7% on a pro forma basis. This contrasts with the 9 month decline to December 2003, when STRs were down 3.4%. The slowing of the volume decline trend can be attributed to continued growth in Miller Lite brand sales offset by some weaker performances elsewhere in the brand portfolio. There has been no material change in the level of distributor inventories in the current year, following the reduction in the prior year. Miller financial performance is ahead of our expectations reflecting better Miller Lite volumes, efficiencies and improved effectiveness in marketing spend, and benefits from restructuring. Overall, the execution of the Miller turnaround strategy remains on schedule. In Central America, beer volumes have grown by some 4%, whilst sales of carbonated soft drinks are down 4.5% reflecting a slowing of the negative trend. Our initiatives in improving the brand portfolios and stimulating growth in beer consumption, together with benefits from lower costs following a wide-ranging restructuring programme, have enhanced financial performance. Volumes in our Europe business remain strong, with year to date organic lager volumes some 8% above the prior year, leading to financial performance being in line with our expectations. The integration projects within Peroni remain on plan although its profitability for the period is impacted by integration costs and significant investment behind our brands, particularly in support of the launch of Miller Genuine Draft...more info

Asian Pacific Breweries (APB), Heineken's Asian based partner company, is set to launch a new beverage, which combines the qualities of beer and champagne. Touché is brewed with champagne yeast, which gives it an enhanced flavour, the company claims. The drink is predicted to do well in the UK market – and is another indication of the growth of the Asian beer sector, writes Danny Vincent, according to Beverage Daly report from March 23. Alcopops sales have decreased in the UK and this new hybrid could bridge the gap between the two stable markets of beer and champagne. The drink is set for UK launch and APB believes that it will perform well in this particular market. Executives at APB say that the drink has received a lot of interest from companies across Europe and in the US. Touche has a 5.5 per cent alcohol content and the company claims that it has a sweet taste that carries a whiff of Chardonnay grapes. In Singapore the drink is already popular among celebs, the company claims. The concept of brewing with champagne yeast was developed in Heineken laboratories, but APV is the first company to implement the technique and market such a product. APB is a unit of Asian Beverage group Fraser and Neave, it is 42.5 per cent owned by Heineken. The Asian beer market is growing 5 per cent annually, which is 3 times faster than the global market. Heineken invested Bt2. 9 billion in Asia last year. Observers claim that it is this sector, which Heineken need to exploit for future growth

The Ukraine Beer Market, 2003

Total beer market 1.526 million litres in 2003.
Per capita consumption 31 litres in 2003.

Canada sold fairly large quantities of malt to Japan recently. Most of the Canadian/U.S. industry is in a comfortable position, having sold most of its production for the present crop year, according to ananlysts. The industry is closing unprofitable factories in the Midwest. In the Western U.S. three new malthouses are being built or will be built, respectively. Brewing industries moved westwards so did the barley growing. Railway tariffs for barley transport to the malthouses and malt shipments to brewers are less advantageous for some malthouses east of North Dakota. Contrary to their European colleagues the North American maltsters are strong enough to adapt themselves to a changed market constellation.

Barley News

New Zealand: The malting industry says it is too soon to know if a shortage of good quality barley will have any impact on the price of beer, NewstalkZB posted on March 18. Floods in the lower North Island and drought in the South mean there is a shortage of top quality barley for malting. New Zealand normally processes 45,000 tonnes of barley a year for malt for the brewing industry. It is all produced at the International Malting Company in Marton, which says it may be necessary to import grain to make up any shortfall. A spokesman says they are still assessing the situation.

Australia: Barley growers will soon have access to the new variety, Baudin, which was officially launched in the eastern states last October, Country News posted on March 22. The variety has been lauded by some as a replacement for Gairdner. The Western Australian Department of Agriculture released Baudin due to its much-improved malting quality over Gairdner. It currently holds a provisional malting status. In Western Australian trials Baudin yields more than Gairdner. However, in two years of Victorian trials, yields are similar to Gairdner. Horsham DPI barley industry officer Denise McLellan said the key issues with Baudin are: It is very susceptible to rust and should not be grown in rustprone areas; In other areas, a fungicide management strategy must be in place for rust; It is shorter than Gairdner and won't lodge in high-yielding situations; Has improved grain size over Gairdner, very evident in a season like last year; Long-term yields are slightly less than Gairdner; It has excellent quality; It has an end-point-royalty of $3.80/tonne. Denise suggested if growers were having a good run with Gairdner they should be hesitant to change. She doesn't think the economics favour Baudin over Gairdner. One paddock of Baudin would be okay to get a comparison.

Theoretical malt prices.

* - 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 2004 are available on site www.e-malt.com/MarketPrices

Malting barley prices. French barley prices. Nominal prices.

EURO = USD 1.2331 March 24, 2004
Crop year		2003		2004
Parity		FOB Creil		FOB Creil
Position		July 2003		July 2004
Type	Variety	EURO	USD	EURO	USD
2RS	Scarlett	123.50	152.50	128.00	158.00
2RS	Prestige/Cellar	122.50	151.50	127.00	157.00
2RS	Aspen	121.50	150.00	126.00	155.50
2RS	Optic	121.50	150.00	126.00	155.50
2RS	Astoria	120.50	148.50	125.00	154.50
2RS	Cork	120.50	148.50	125.00	154.50
6RW	Esterel	nq	nq	117.00	144.50

nq - Not quoted

Prices for Danish and UK malting barley are available on site www.e-malt.com/MarketPrices

Graph of the week

Agenda

March 2004: PIVEX - INTERNATIONAL BREWING & MALTING FAIR ; New York City Real Beer Festival; Real Ale Festival; The Night of Large Thirst; Zythos Beer Festival; International course - Malting and Brewing Science; ALIMENTARIA 2004; FOODEX Japan 2004; ANTAD 2004; FOOD & DRINK EXPO 2004; Forth Russian Conference on Non-alcoholic Beer; 2004 BIENNIAL CONVENTION; Beer Auction 2004, the international exhibition of beer, technology and equipment; China Drinktec 2004. China International Exhibition on Beverage and Brewing Processing Technology
April 2004: InterFood; INTERFOOD UZBEKISTAN /INTERFOODTECH 2004; INTERFOOD ST. PETERSBURG 2004; SIBFOODEXPO 2004; BEER. WINES & DRINKS International Beer; World Beer Cup; 2004 National Craft Brewers Conference; FOODASIA 2004; ASTANA FOOD 2004; INTERFOOD AZERBAIJAN/ INTERFOODTECH 2004; 43rd MBAA District Caribbean Convention; IFEX 2004; EXPOVIVIENDA 2004;
May 2004: EBC SYMPOSIUM 'FOOD SAFETY & TRACEABILITY'; CANADEAN'S 4th INTERNATIONAL BEER CONFERENCE; CITBUSMED 2004; PIVO, GASTRO, BAKERY / Bulgaria; ALCO + SOFT 2004 / Ukraine; FOOD & DRINKS/FOOD TECHNOLOGY 2004 / Moldova; Beer International Brewing Technology Exhibition / Russia;

More events are available on site e-malt.com

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