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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
Hops news
More news
Theoretical malt prices
Malting barley prices
Price evolution
Table of the week
Graph of the week
On These Days
Agenda
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Average market prices
Change trend

May 17 - May 20, 2007
Crop 2006
2rs Barley €201.0-203.0 1.46%
6rw Barley €170.0-172.0 2.29%
2rs Malt €421.0-423.0 0.94%
6rw Malt €382.0-384.0 1.29%
Crop 2007
2rs Barley €193.0-195.0 1.52%
6rw Barley €169.0-171.0 1.73%
2rs Malt €390.5-392.5 0.89%
6rw Malt €359.5-361.5 1.10%

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. Average Malt Prices are theoretical and based FOB Antwerp being estimated on French malting . The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


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Newsletter 20a, 2007

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Newsletter 19b, 2006

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Newsletter 19a, 2007

See this Newsletter!
Newsletter 18b, 2007

See this Newsletter!
Newsletter 18a, 2007



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USA Malt Import by Country of Origin

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Thailand Beer Sales (1991 - 2006)

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E-malt.com Newsletter 20b
May 17 - May 20, 2007

Quote of the week

"A meal of bread, cheese and beer constitutes the perfect food."
Queen Elizabeth I


Currency Rates
Base Currency: Euro, EUR
on 18-May-2007

1 EUR = 1.3515 USD
1 EUR = 0.6839 GBP
1 EUR = 1.4895 CAD
1 EUR = 1.6398 AUD
1 EUR = 163.54 JPY
1 EUR = 2.6509 BRL
1 EUR = 34.9082 RUB
1 EUR = 10.3956 CNY
Base Currency: US Dollar
on 18-May-2007

1 USD = 0.74 EUR
1 USD = 0.506 GBP
1 USD = 1.1021 CAD
1 USD = 1.2132 AUD
1 USD = 121.007 JPY
1 USD = 1.9614 BRL
1 USD = 25.8284 RUB
1 USD = 7.6917 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
India & Belgium: InBev announces long-term joint venture agreement with the RKJ group... Click here

Australia: Foster's and Carlsberg agree on partnership... Click here

Netherlands: Heineken achieves solid volume growth in first four months of 2007... Click here

USA: Coors and SABMiller merger could be a solution on a weak North American beer market... Click here

New Zeeland: Lion Nathan H1 net operating profit up 3.6%... Click here

Bulgaria: New brewery starts operation in Pleven... Click here

UK: Sales of SABMiller’s Polish beers rise in the UK... Click here

EU: The EU licence figures remain the only valid statistics of malt exports... Click here

Romania: Soufflet Malt Romania gross profit rose 3.5 times in 2006... Click here

EU: Regarding barley crop 2006, brewers and maltsters covered at least a one month demand less than in normal years... Click here

Canada: What will happen to the CWB sales of old and new crop barley, will they be executed?... Click here

Australia: Lack of rain affected hop growth... Click here

More News
UK: Warm weather boosts beer sales 10% for SABMiller ... More Info

USA: Pyramid Breweries Inc. reports first quarter 2007 financial results ... More Info

Japan: Kirin to market Nippon Premium beer made from domestic hops ... More Info

Mexico: FEMSA announces stock split record date ... More Info

Canada: Molson Coors focus on strategic brands is starting to pay off in profits ... More Info

Jamaica: Kingston pilsner beer gains ground ... More Info

USA: Miller profit down 17% because of flat sales ... More Info

UK & India: United Breweries chairman acquires Whyte & Mackay for £595 mil ... More Info

India: Cobra Beer to set up greenfield brewery in Punjab ... More Info

Canada: Brick Brewing signs agreement to brew Tiger Malt non alcoholic beer for Banks Brewing ... More Info

Nigeria: Nigerian Breweries hits 86 bln naira turnover ... More Info



Brewery News
India & Belgium: InBev announces long-term joint venture agreement with the RKJ group

InBev announced that it has entered into a long-term joint venture agreement with the RKJ group, a leading beverage group operating in India, according to InBev’s press release, May 16. This will be InBev's exclusive vehicle to invest in the promising Indian beer market.

While the business will not have a material impact on InBev’s global business in the short to medium term, InBev is confident that the combination of its expertise in beer with the financial and operational discipline of the RKJ group will allow the company to deliver its business plan in the country and build a meaningful presence over time.

InBev will take an initial 49% stake in the venture with the option to increase its participation at a later time. It is anticipated that the joint venture will have access to the strong distribution network developed by RKJ and InBev's attractive portfolio of beer brands.

Terms of the agreement were not disclosed.

About InBev

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. InBev’s strategy is to strengthen its local platforms by building significant positions in the world's major ...
More Info


Australia: Foster's and Carlsberg agree on partnership

Foster's Group Limited (Foster's) and Carlsberg Breweries A/S (Carlsberg) today entered into a long-term agreement for Foster's to brew, market, sell and distribute Carlsberg's beer brands in Australia, according to Foster’s press release, May 17.

"We're delighted to be building a closer relationship with Carlsberg and the brand will be a great addition to our existing international beer portfolio. The combination of Foster's brewing experience, marketing strength and sales reach, with the heritage of Carlsberg which is one of the world's top-ten international beer brands, will be a winning formula" said Foster's CEO, Trevor O'Hoy.

"The new agreement is a great outcome for Carlsberg in Australia," said Nils S. Andersen, Carlsberg President and CEO. "Carlsberg is experiencing strong growth worldwide and in partnership with Foster's, we look forward to building our brand and growing sales in the Australian market."

Carlsberg, the flagship brand in Carlsberg's portfolio, is one of the most well known beer brands in the world. Australians are increasingly enjoying a taste for international premium beer brands with volume in the segment growing by 24%*, making it the fastest growing segment in the beer category.

The agreement, effective from 1 July 2007, includes the Carlsberg, Carlsberg Elephant and ...
More Info


Netherlands: Heineken achieves solid volume growth in first four months of 2007

Heineken N.V. announced that it has achieved good beer volume growth across all regions in the first four months of 2007, according to company’s press release, May 16. The announcement was made ahead of Heineken’s Financial Markets Conference in Miami, USA. Heineken will leave its previously communicated full-year guidance of 10-13% organic net profit growth unchanged as the full-year result is heavily dependent on performance in the peak-selling season, from May to August.

In the first four months of 2007, consolidated beer volume grew 11.3% to 34.9 million hectolitres with first-time consolidations accounting for 0.9% of the increase. Due to seasonality in the beer industry, volume and profitability in the first four months of a year is relatively low in the Northern hemisphere. In the first four months of 2006, Heineken’s consolidated beer volume and net profit (beia) accounted for 28% and 21% respectively of the full-year 2006 numbers.


Consolidated beer volume (first four months (‘000 hls))

- Western Europe 9,443 (2007), 9,031 (2006), 4.6%
- Central and Eastern Europe 13,937 (2007), 12,253 (2006), 13.7%
- Americas 4,367 (2007), 4,131 (2006), 5.7%
- Africa 4,633 (2007), 3,955 (2006), 17.1%
- Asia Pacific 2,494 (2007), ...
More Info


USA: Coors and SABMiller merger could be a solution on a weak North American beer market

The continued weakness in the crucial North American beer market has fuelled speculation of a possible merger between SABMiller and its US rival Coors, according to Business Report, May 18.

A tie-up between Coors and SABMiller would create an entity with about 30 percent of the US beer market. It would be better placed to counter the impact of the aggressive marketing tactics employed by Anheuser Busch's Budweiser, which has more than 50 percent of that market.

The financial 2007 results released yesterday by SABMiller revealed a generally strong performance - but one that was once again overshadowed by the poor showing at Miller's operations in the US.

While overall group revenue was up 22 percent to $18.6 billion (R129 billion) and earnings before interest, tax and amortisation (ebita) was also up 22 percent to produce a 10 percent increase in earnings to R1.20 a share, things looked quite different over at Miller.

The US-based beer operation reported a 1 percent decline in revenue for the 12 months to March and a 17 percent decrease in ebita.

In the face of continued difficulties, some analysts are now talking of a possible merger between Miller, which has 18 percent of the US beer market, and Coors, ...
More Info


New Zeeland: Lion Nathan H1 net operating profit up 3.6%

Lion Nathan announced a 3.6% increase in operating net profit after tax (NPAT) to $156.8 million for the six months to 31 March 2007 following a 5.3% increase in net sales revenue to $1.04 billion, according to company’s press release, May 17.

After the impact of one-time items (OTI) and individually significant items (ISI), reported NPAT increased 8.8% to $162.0 million2. Group operating earnings before interest and tax (EBIT) increased 4.2% to $269.2 million while Group reported EBIT increased 3.4% to $264.1 million. Revenue and EBIT growth for the first half of the 2007 financial year reflect the benefits of brand investment and new product development. The result was also achieved after incurring higher commodity costs, primarily in aluminium and sugar as well as the planned investments associated with the company’s ready to drink spirits (RTD) strategy, which contributed to a $41 million increase in costs for the period. The Company has continued to produce consistent earnings and cash flow while increasing investment in brand marketing and production upgrades in order to achieve higher sustainable long term NPAT growth. For the current financial year, the operating NPAT guidance range has now been revised from $245-$260 million to $250-$260 million. However, ...
More Info


Bulgaria: New brewery starts operation in Pleven

Local company Didi Puhi said it has launched a new beer factory in its home town of Pleven, Northern Bulgaria, according to Dnevnik, May 18.

The brewery, located on a 5,000 sq m plot in the Pleven industrial zone, cost 5 mln levs (about EUR 2.5 mln). The beer production licenses Czech technology and is based on Czech malts. The lager will be marketed under the brand Ataman in 1 liter glass containers and 2 liter PET containers.

In its first year of operation, the brewery will produce 50,000 hectoliters for distribution in the Pleven region. Output will gradually reach 100,000-120,000 hectoliters a year.

The talk of possible resurrection of beer production in Pleven started 2 years ago when InBev, the world's biggest brewer by volume, shifted its regional operations from the local Plevensko Pivo brewery to production facilities in Southern Bulgaria.

Didi Puhi is a licensed grain traders and importer of malt products.


UK: Sales of SABMiller’s Polish beers rise in the UK

SABMiller announces that sales of its Polish beer brands, Tyskie and Lech, are soaring in the UK, according to company news release, May 17. Launched in the UK two years ago, sales of Tyskie have risen by 333% in SABMiller’s second half (six months to March 2007) against the comparable period last year. Tyskie and Lech now sell over 100,000 hectolitres or 17.6 million pints in the UK and Ireland. This is against a flat lager market in the UK.

Tyskie and Lech’s popularity is largely attributable to the influx of migrant Polish workers since Poland’s acceptance to the European Union in 2004. Some estimates indicate there could be as many as 1 million Poles living in the UK. West London is home to the largest Polish community with Uxbridge the number one area outside London.*

Tyskie’s UK success now forms part of a high profile print and broadcast campaign in Poland, which is managed through SABMiller’s Polish subsidiary, Kompania Piwowarska. Tyskie delivery lorries travelling across the country now carry the Union Jack together with; “Deliveries to London Daily” written in English to advertise its new status as an export brand.

Alan Clark, Managing Director ...
More Info

Malt News
EU: The EU licence figures remain the only valid statistics of malt exports

Eurostat published the malt export numbers for 2006: 2.374 million tonnes to third countries, 1.284 million tonnes intra-EU.

Regrettably these figures are wrong again, market analysts commented on May 2nd. During the year 2006 malt exporters booked licences for 1.954 million tonnes, 418,000 tonnes less the export statistics show, and exports without licences are not possible.

The major or even only source of error is Belgium, where shipments of French, German, Dutch and British malt through the port of Antwerp are registered as Belgian exports, but they are also counted in their countries of origin. Belgium has a malting capacity of 750,000 tonnes, but exported 1.32 million tonnes in 2006 as per Eurostat.

The wrong accounting makes also comparisons of countries of destination useless, especially overseas countries served through Belgian ports. The EU licence figures remain the only valid statistics of malt exports.


Romania: Soufflet Malt Romania gross profit rose 3.5 times in 2006

Soufflet Malt Romania, subsidiary of French malt producer – Soufflet, announced a 2006 turnover of 54.6 mil lei (15 mil Euro), 21.5% higher than in 2005 and a gross profit of 2.7 mil lei, 3.5 times bigger than in 2005, Ziarul Financiar published May 17.

Soufflet has malt-houses in Pitesti and Buzau and silos in Pitesti, Buzau and Timisoara.

The company announced another production unity set-up in autumn 2008 in Buzau, an investment estimated at 46 mil Euro.

Soufflet Group is the biggest European malt producer and the third biggest miller in Europe.

Barley News
EU: Regarding barley crop 2006, brewers and maltsters covered at least a one month demand less than in normal years

Old crop barley markets are completely dormant; there is no further demand and few, mostly unattractive offers, market analysts commented May 2nd.

“We will never know exactly, how the large deficit of crop 2006 was covered, but there exist incredible stories about sprouted barley, FAQ (=feed) barley, barley sold and transported from one corner of Europe to another, and also imports, from Argentina, Uruguay and Ukraine.

France had a very good crop last year and finally delivered large quantities of spring and winter barley to the EU deficit countries. Maybe most important, brewers and maltsters covered at least a one month demand less than in normal years, hoping for a better supply and offer of barley of crop 2007.


Canada: What will happen to the CWB sales of old and new crop barley, will they be executed?

Soil moisture is excellent, the melting of the snowpack in Northern Saskatchewan created local flooding and delays planting.

The problem of Canada is another one: In a plebiscite of the Western Provinces farmers voted for an optional marketing of their barley, through the CWB and the open market. The government wants to put a relevant regulation in force as of August 1, and the CWB has not published a PRO for the crop 2007 any more.

The question is, what will happen to the CWB sales of old and new crop barley, will they be executed? Legal battles between government, the CWB, trade and maltsters are threatening, meantime trade of malting barley has stopped completely. (Domestic trade of feed barley had been out the CWB’s hands since years). As Canada hopes for a crop of 13 million tonnes versus 10 million tonnes last year, a clarification of the situation is urgent.

Neighbour USA, where barley has become a specialty crop for the brewing and malting industry, reports excellent growing conditions.

Hops News
Australia: Lack of rain affected hop growth

The 2007 Australian crop came in well below long term average yields in almost all growing areas, according to Barth-Haas Group, May 7. Early spring brought very cold temperatures to all regions with many plants showing frost damage and slow growth at training time. The hardest hit areas were Scottsdale in Tasmania and the King Valley in Victoria. Bushy Park Estates in southern Tasmania also experienced very windy weather early in the season which played havoc with some varieties. Young bines were repeatedly blown from the strings, necessitating additional training runs to return bines to the string.

The most significant affect on hop growth and ultimately yield of both hops and alpha, was simply the lack of rain. Australia generally has been suffering the crippling affects of low rainfall, with rainfall in many areas of Tasmania and Victoria at the lowest ever recorded levels.

During the last twelve months Rostrevor Hop Gardens received just 39% of the average rainfall for the period, and Bushy Park Estates received 66% of average falls.

Farms with adequate dam and/or river supply were able to cope with the season and produced slightly below average crops. Those farms with insufficient storage, or those who had ...
More Info


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.3515 May 18, 2007 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  204.00  276.00  196.00  265.00 
2RS  Prestige  203.00  274.50  195.00  263.50 
2RS  Cellar  202.00  273.50  194.00  262.50 
2RS  Sebastien  201.00  272.00  193.00  261.00 
2RS  Astoria  201.00  272.00  193.00  261.00 
2RS  Cork   201.00  272.00  193.00  261.00 
6RW  Esterel   171.00  231.50  170.00  230.00 

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

Theoretical malt prices.
  EURO = USD 1.3515 May 18, 2007 
Crop year  2006 
Parity  FOB Antwerp 
Position  May 2007-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  424.50  573.50  447.50  604.50  441.00  596.00  451.50  610.50 
2RS  Prestige  423.50  572.00  446.00  603.00  440.00  594.50  450.50  608.50 
2RS  Cellar  422.00  570.50  445.00  601.50  438.50  593.00  449.50  607.00 
2RS  Sebastien  421.00  568.50  443.50  599.50  437.50  591.00  448.00  605.50 
2RS  Astoria  421.00  568.50  443.50  599.50  437.50  591.00  448.00  605.50 
2RS  Cork   421.00  568.50  443.50  599.50  437.50  591.00  448.00  605.50 
2RS   Average price  422.00  570.50  445.00  601.50  438.50  593.00  449.50  607.00 
6RW  Esterel   383.00  519.00  406.50  549.50  400.50  541.50  411.00  555.50 
Asia Malt 70/30  410.50  555.00  433.50  585.50  427.50  577.50  438.00  591.50 
**  Asia Malt 50/50  403.00  544.50  426.00  575.50  419.50  567.00  430.50  581.50 


  EURO = USD 1.3515 May 18, 2007 
Crop year  2007 
Parity  FOB Antwerp 
Position  Oct 2007-Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  393.50  532.00  416.50  563.00  410.50  554.50  421.00  568.50 
2RS  Prestige  392.50  530.50  415.50  561.50  409.00  553.00  419.50  567.00 
2RS  Cellar  391.50  528.50  414.00  559.50  408.00  551.00  418.50  565.50 
2RS  Sebastien  390.00  527.00  413.00  558.00  406.50  549.50  417.00  563.50 
2RS  Astoria  390.00  527.00  413.00  558.00  406.50  549.50  417.00  563.50 
2RS  Cork   390.00  527.00  413.00  558.00  406.50  549.50  417.00  563.50 
2RS   Average price  391.50  528.50  414.00  559.50  408.00  551.00  418.50  565.50 
6RW  Esterel   360.50  489.00  384.50  519.50  378.50  511.50  389.00  525.50 
Asia Malt 70/30  382.50  517.00  196.50  547.50  190.50  539.00  201.00  553.50 
**  Asia Malt 50/50  376.50  509.00  196.50  539.50  190.50  531.50  201.00  545.50 

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

Table of the week

EU Malt Export Licence Fixations

(in tonnes) 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 Jul 01, 2006 -
April 24, 2007  
 France   701,134  661,772  774,761  674,140  648,338  425,829 
 Germany   468,314  408,063  422,047  295,876  236,735  187,760 
 Belgium   296,368  287,850  317,292  418,344  551,396  452,056 
 Bulgaria   1,090 
 U.K. 350,621  294,995  443,501  201,892  190,862  98,082 
 Finland   91,890  100,758  114,165  64,986  79,357  38,654 
 Denmark    96,812  94,791  90,452  74,743  68,809  59,244 
 Sweden   101,000  76,916  78,369  88,840  96,100  64,950 
 Netherlands   51,310  66,219  80,703  49,128  92,383  63,550 
 Ireland   35,145  31,140  38,900  56,924  7,001  2,250 
 Austria   8,840  8,620  60,211  16,954  38,932  18,644 
 Spain   2,400  5,640  10,000 
 Greece   1,744  1,306  979  130 
 Portugal   221  85  695  850  1,088  791 
 Czech Republic       34,340  82,062  77,036  38,326 
 Poland       7,604  32,084  167 
 Hungary       2,830  85,792  16,865  2,787 
 Slovakia       1,000  76,916  75,863  20,970 
 Lithuania      54  72 
 Total EU   2,205,799  2,038,157  2,477,849  2,219,661  2,180,986  1,475,052 

  Total Wheat malt, tonnes  
Total 2001 - 2002    12,805 
Total 2002 - 2003    30,908 
Total 2003 - 2004    15,768 
Total 2004 - 2005    8,162 
Total 2005 - 2006   4,693 
July 01, 2006 - April 24, 2007   3,910 
   
  Total Roasted malt, tonnes  
Total 2001 - 2002    23,480 
Total 2002 - 2003    23,603 
Total 2003 - 2004    24,438 
Total 2004 - 2005    27,212 
Total 2005 - 2006   23,257 
July 01, 2005 - April 24, 2007   24,165 
Newsletter SummaryTop
Graph of the week


These Days in Business History
May 17
1892 George Sampson patents clothes dryer
1921 Belgian-Luxembourg sign customs union
1968 European Space Research Org launches 1st satellite

May 18
1801 Well over a century after stock trading began in Britain, the cornerstone of the stock exchange building is finally laid in the City of London.
1822 Frederic Passy is born, French economist/pacifist, Nobel 1901
1954 European Convention on Human Rights goes into effect

May 19
1892 Charles Brady King invents pneumatic hammer
1913 William Reddington Hewlett is born, American Businessman
1939 1st regular transatlantic airmail (New York to Marsseille France)

May 20
1806 John Stuart Mill is born, UK, philosopher/political economist/Utilitarian
1875 International Bureau of Weights and Measures forms by treaty
1892 Charles Brady King invents pneumatic hammer
Agenda
May 2007:
European Grain & Oilseed Convention 2007, Brussels
31-st International Congress of the European Brewery Convention , Italy
Hofex - 2007, China
InterFood Azerbaijan 13th Azerbaijan International Food Industry and Agriculture Exhibition
InterFood Astana , Kazakhstan, 9th Astana International Exhibition for Food, Beverages, Technologies


June 2007:
Japan-Asia Beer Cup 2007, Tokyo
InterFood Mongolia
IGC Grains Conference 2007 London, England
Great Japan Beer Festival 2007 in Tokyo
Brasil Brau 2007
The International Hop Growers’ Convention(IHGC)
Practical Course on Malt and Malting Barley Canada
The 5th Canadian Barley Symposium & District Western Canada MBAA
Seattle International Beer Festival


July 2007:
Olesummer Festival 2007
Portland International Beer Festival
51 Congress of The International Hop Growers Convention


August 2007:
Qingdao International Beer Festival, China
International Berlin Beer Festival
Great British Beer Festival
1st International Brewers Symposium Hop Flavor and Aroma
Great Japan Beer Festival 2007 in Osaka
Brew Drinks China 2007
The 13th Australian Barley Technical Symposium, Australia


September 2007:
Belgian Beer Weekend
Great Canadian Beer Festival
Great British Beer Festival
WBA Associate in Brewing Technology Program in Chicago
WBA International Diploma in Brewing Technology Program Chicago & Munich Campuses
WorldFood Moscow


October 2007:
The International Brewing Convention 2007 , UK
Newport International Oktoberfest, USA
World Beer Festival Durham , USA
Tasting Australia
2007 Master Brewers Association of the Americas Convention




More events are available on site e-malt.com
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