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

June 11 - June 13, 2007
Crop 2006
2rs Barley €197.0-199.0
6rw Barley €170.0-172.0
2rs Malt €417.0-419.0
6rw Malt €382.5-384.5
Crop 2007
2rs Barley €210.0-212.0
6rw Barley €185.0-187.0 1.09%
2rs Malt €411.5-413.5
6rw Malt €379.5-381.5 0.66%

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 23a, 2007

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Newsletter 22b, 2007

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Newsletter 22a, 2006

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Newsletter 21b, 2007



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E-malt.com Newsletter 24a
June 11 - June 13, 2007

Quote of the week

"A true friend is one who overlooks your failures and tolerates your successes."
Doug Larson


Currency Rates
Base Currency: Euro, EUR
on 13-June-2007

1 EUR = 1.3346 USD
1 EUR = 0.6765 GBP
1 EUR = 1.4168 CAD
1 EUR = 1.5831 AUD
1 EUR = 162.46 JPY
1 EUR = 2.5952 BRL
1 EUR = 34.7018 RUB
1 EUR = 10.2144 CNY
Base Currency: US Dollar
on 13-June-2007

1 USD = 0.7494 EUR
1 USD = 0.507 GBP
1 USD = 1.0617 CAD
1 USD = 1.1862 AUD
1 USD = 121.737 JPY
1 USD = 1.9446 BRL
1 USD = 26.0024 RUB
1 USD = 7.6537 CNY

EUR/USD Chart

Equities of the Largest Breweries

Top Industry News
Luxembourg: The ruling of the Court of First Instance is not a threat to Budweiser Budvar’s existing business activities within the EU... Click here

Australia: Kent Brewery site sold to Frasers... Click here

Serbia & Slovenia: Pivovarna Lasko fails in bid to acquire Serbian brewer... Click here

Romania : EU integration changes export destinations for beer producers... Click here

Kazakhstan: Efes Breweries unit secures 31.7 mil euro loan for Kazakhstan expansion... Click here

Canada: Brick Brewing reports first quarter results... Click here

Germany: Durst Malz and Malzfabrik Landsberg concluded a deal of expansion... Click here

World: In the last weeks of May a number of new malt factory projects were announced... Click here

Canada: CWB loses export barley monopoly... Click here

Europe: The forecast of malting barley demand in Europe... Click here

More News
Germany: Survey shows beer consumption rose for the first time in 12 years in 2006 ... More Info

Germany: Warsteiner buys Herforder for undisclosed sum ... More Info

Nigeria: Nigerian Breweries profit hit N6.6bn in first quarter ... More Info

UK: Fuller, Smith & Turner Plc profits up 23% ... More Info

Russia: SABMiller to boost Russia output 50% with new brewery ... More Info

World: Barley market situation for 2006/2007 ... More Info

Turkey: Fitch Ratings revises Efes Beverage Group national rating ... More Info

France: Castelain Brewery launches 2 new beers ... More Info

India: Carlsberg to enter India with Okocim Palone ... More Info

Canada: Steelback Brewery launches $2 mil lawsuit against blogger ... More Info

USA: Retro beer trend gives optimism to Pittsburgh Brewing's new owners ... More Info

Malaysia: Guinness Anchor appoints new GM for marketing ... More Info

Netherlands: Heineken counts down to Rugby World Cup 2007 with ‘Continental Shift’ campaign ... More Info

Ireland: Heineken implements mobile reporting system for improving beer quality ... More Info



Brewery News
Luxembourg: The ruling of the Court of First Instance is not a threat to Budweiser Budvar’s existing business activities within the EU

The Luxembourg Court of FIRST Instance has ruled in several disputes concerning the registration of so-called Community Trademarks “Budweiser” and “Bud”, with the defendant in all cases being the European Office for Harmonization in the Internal Market (hereinafter OHIM), according to Budvar’s press release, June 12. The result of No.T-71/04 proceedings regarding the registration of the “Budweiser” trademark for Class 32 products – beer and similar, is of key importance for Budweiser Budvar. The proceedings in this case were abandoned, as the adverse party had retracted its application.

As a matter of fact, Class 32 is absolutely essential in the consideration to the subject of Budweiser Budvar’s business activities. Other classes’ products (e.g. Class 14: precious metals, Class 21: cleansing utensils, Class 25: clothes, Class 29: meat etc.) are not the subject of Budweiser Budvar’s business activities. Today’s rulings are therefore not relevant to the sale of Budweiser Budvar beer and are not a threat to its existing commercial activities in the EU countries. Moreover, none of the rulings is final and after going through them thoroughly, Budweiser Budvar is going to carefully consider whether to appeal against them or not.

“The Luxembourg Court’s current rulings in the matter of the ...
More Info


Australia: Kent Brewery site sold to Frasers

Foster's Group Limited (Foster's) signed a $208 million sale agreement with Frasers Property (Frasers) for the site of the former Kent Brewery in Sydney, Australia, according to Foster’s press release, June 12.

Encompassing nearly 5.8 hectares of land, the Sydney CBD site has been sold with concept approval for a mixed residential, office, retail, entertainment and dining precinct, while preserving the site heritage and introducing parks and open space.

Design concept approval for the former Kent Brewery site was received from the NSW Minister for Planning, The Hon. Frank Sartor in February this year.

Foster's CEO, Trevor O'Hoy said: "This is a great outcome for Foster's, Frasers Property and the city of Sydney. It represents an opportunity for a new lease of life for this 160 year old brewery site - while preserving its significant local heritage".

The site, the former home of the Tooth and Co. and Carlton & United Breweries, was built on Blackwattle Creek in 1835. The brewery ceased operation in early 2005.

"Acquisition of the CUB site, which constitutes the single largest remaining development site in the city fringe, is testament to Frasers' confidence in the Sydney market," said Dr Stanley Quek, CEO of Frasers Property.

"This site is both an ...
More Info


Serbia & Slovenia: Pivovarna Lasko fails in bid to acquire Serbian brewer

Slovenian beverage group Pivovarna Lasko has failed in its bid to acquire 52% of a Belgrade-based brewer, according to Slovene Press Agency, June 7. Serbian Privatisation Agency said that the competition for the stake in Beogradska industrija piva (BIP) was won by a Swedish-Lithuanian consortium.

While United Nordic Beverges of Sweden and Alita of Lithuania offered EUR 4.5 per share or a total of EUR 21.4m for the 51.9% stake in BIP, Pivovarna Lasko was prepared to pay EUR 2.5 per share or EUR 11.8m for the stake.

The Slovenian group, whose flagship product is beer, was willing to invest another EUR 9m, or twice as much as the selected consortium in what used to be the largest Serbian brewer.

This was not enough to make up for the difference in the price offered for the ownership stake.

Only two bidders applied for the call for tenders for BIP's takeover.


Romania : EU integration changes export destinations for beer producers

Virgil Mailat, general manager and one of the six shareholders of Bere Mures, the second largest Romanian-held company on the beer market, says Romania's EU integration has been changing export destinations for local producers, Ziarul Financiar published June 11.

With exports to the Republic of Moldova dropped due to taxes, the company is looking towards the Hungarian and Bulgarian markets. "We had a warehouse, we were selling on the market in the Republic of Moldova, but now we have withdrawn and are looking to expand towards Hungary and possibly Bulgaria," said Virgil Mailat. He added that, unfortunately, two months after accession, beer sales in Romania registered a shock, due to the flood of imported products from Bulgaria.

"The South of the country is full of Bulgarian beer, at dumping prices - high volumes at small prices," Mailat stated. The general manager of Bere Mures added that, in order to increase the company's competitiveness, he would attempt to enter onto the market of beer bottled in glass containers, which would implicitly involve investments in bottling.


Kazakhstan: Efes Breweries unit secures 31.7 mil euro loan for Kazakhstan expansion

Efes Breweries International NV said its wholly owned unit, Efes Karaganda Brewery JSC, has secured a 31.7 mln eur loan from the European Bank for Reconstruction and Development to boost the company's expansion in Kazakhstan, AFX News Limited reported June 13.

Efes Breweries is a 70 pct subsidiary of Anadolu Efes Biracilik ve Malt Sanayi AS, a Turkish beverage group selling beer, soft drinks, malt and hops in Turkey, Eastern Europe and the CIS.


Canada: Brick Brewing reports first quarter results

Brick Brewing Co. Limited, Ontario's largest Canadian-owned and Canadian-based publicly held brewery released its first quarter financial results for the quarter ended April 30, 2007, according to Canadian News Wire, June 12.

First Quarter Financial Highlights

Gross revenues for the first quarter of fiscal 2008 were $15.6 million as compared to $16.1 million a decrease of 2.9%. Net revenues for the first quarter of fiscal 2008 were $6.9 million compared to $7.7 million in the first quarter of fiscal 2007, a decrease of 10.3%, due primarily to increased production taxes paid compared to the same period last year. These increased production taxes negatively impacted net revenues by $326 thousand in increased marginal production taxes compared to the same quarter last year. These increased per unit production taxes are due to the Company no longer benefiting from the Ontario small brewer tax reduction in fiscal 2008.

The Ontario small brewer tax reduction reduced provincial taxes payable for the Company by a total of $2.6 million in fiscal 2007. In the quarter, the Company's overall beer volumes decreased by 6% over the same period last year. A portion of the lower volumes related to less price promotion activity in the recent quarter when compared ...
More Info

Malt News
Germany: Durst Malz and Malzfabrik Landsberg concluded a deal of expansion

DURST MALZ Heinrich Malzfabriken and Malzfabrik Landsberg have concluded a deal with the target of entering together the barley and malt market and the Malzfabrik Landsberg to develop its production capacity from the present 28,000 tonnes to 60,000 tones by 2009, Durst Malz communicated E-malt on June 6.


World: In the last weeks of May a number of new malt factory projects were announced

Heine of Peine, Germany, constructs a malthouse in the port of Hamburg, 75,000 tons; They will shut an old unit of 30,000 tons at Peine.

Simpsons of Berwick, U.K., will expand their Berwick plant by 30 – 40,000 tons.

Avangard, Moscow/Bremen, confirmed the completion of the half-finished malting tower at Koblenz, Germany, capacity 80,000 tons.

Soufflet has started construction of a 100,000 tons plant in Romania. Analysts assume that a few more old factories will be shut down in that country.

Soufflet will also build a 130,000 tons malthouse at their headquarters in Nogent, France, expanding their own capacity to 750,000 tons in France.

Barley News
Canada: CWB loses export barley monopoly

Regulations governing the Canadian Wheat Board (CWB) have been amended to allow western Canadian farmers to bypass the marketing board when selling export feed and malting barley at the start of the 2007-08 marketing year, SNS reported June 11.

The amendments to the Canadian Wheat Board Regulations will be published in the Canada Gazette Part II on June 27, 2007. They remove barley and barley products from the CWB's single-desk authority and permit farmers to sell their barley to any domestic or foreign buyer, including the CWB.

The CWB will continue to pool barley and Canada's government will continue to guarantee the initial payments to producers for those who want to continue to sell through the CWB.

A group of a dozen western Canadian farmers have launched a legal challenge to Ottawa's plan to end the Canadian Wheat Board's monopoly on barley sales, in a case that will probably last four to five months, their lawyer said, according to Reuters, June 11.

The farmers, part of a group called Friends of the Canadian Wheat Board, will argue in Federal Court that Agriculture Minister Chuck Strahl did not have the power to end the monopoly by regulation, their lawyer said.

"That's a fundamental flaw, and ...
More Info


Europe: The forecast of malting barley demand in Europe

It is expected that Spain will hardly need any imports; it will probably even supply part of the Portuguese demand, market analysts commented on June 4.

The import demand of Italy and Greece is seen stable at minimum 100,000 tons.

Total malting barley demand in Hungary/Romania/Bulgaria is 370,000 tons, the share of imported barley is expected high.

It is likely that the Czech and Slovak industries must import malting barley as well; the industry awaits the harvest with anxiety.

Poland’s total needs are almost 400,000 tons. Also this country will need substantial supplies from the outside.

As usual the EU, especially France, must deliver malting barley to other Mediterranean and Balkan markets, about 100 – 150,000 tons.

The drought and heat in Russia and the Ukraine raises the question of a possibly large import demand in those two countries.


Malting barley prices. French barley prices.
Nominal prices.

EURO = USD 1.3346 June 13, 2007 
 Crop year   2006   2007 
 Parity   FOB Creil   FOB Creil 
 Position   July 2006   July 2007 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  200.00  267.00  213.00  284.50 
2RS  Prestige  199.00  265.50  212.00  283.00 
2RS  Cellar  198.00  264.50  211.00  282.00 
2RS  Sebastien  197.00  263.00  210.00  280.50 
2RS  Astoria  197.00  263.00  210.00  280.50 
2RS  Cork   197.00  263.00  210.00  280.50 
6RW  Esterel   171.00  228.50  186.00  248.50 

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

Theoretical malt prices.
  EURO = USD 1.3346 June 13, 2007 
Crop year  2006 
Parity  FOB Antwerp 
Position  June 2007-Sept 2007 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  420.50  561.00  443.00  591.00  437.00  583.00  447.50  597.00 
2RS  Prestige  419.00  559.00  441.50  589.50  435.50  581.50  446.00  595.50 
2RS  Cellar  417.50  557.50  440.50  588.00  434.50  579.50  445.00  593.50 
2RS  Sebastien  416.50  556.00  439.50  586.50  433.00  578.00  443.50  592.00 
2RS  Astoria  416.50  556.00  439.50  586.50  433.00  578.00  443.50  592.00 
2RS  Cork   416.50  556.00  439.50  586.50  433.00  578.00  443.50  592.00 
2RS   Average price  418.00  557.50  440.50  588.00  434.50  579.50  445.00  593.50 
6RW  Esterel   383.50  513.50  407.50  543.50  401.00  535.50  411.50  549.50 
Asia Malt 70/30  408.00  544.50  430.50  574.50  424.50  566.50  435.00  580.50 
**  Asia Malt 50/50  401.00  535.50  424.00  565.50  417.50  557.50  428.50  571.50 


  EURO = USD 1.3346 June 13, 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  414.50  553.50  437.50  583.50  431.50  575.50  441.50  589.50 
2RS  Prestige  413.50  551.50  436.50  582.00  430.00  574.00  440.50  588.00 
2RS  Cellar  412.50  550.00  435.00  580.50  428.50  572.00  439.50  586.50 
2RS  Sebastien  411.00  548.50  433.50  579.00  427.50  570.50  438.00  584.50 
2RS  Astoria  411.00  548.50  433.50  579.00  427.50  570.50  438.00  584.50 
2RS  Cork   411.00  548.50  433.50  579.00  427.50  570.50  438.00  584.50 
2RS   Average price  412.50  550.00  435.00  580.50  428.50  572.00  439.50  586.50 
6RW  Esterel   380.50  509.00  404.50  539.50  398.00  531.00  408.50  545.50 
Asia Malt 70/30  403.00  537.50  197.00  568.00  191.00  560.00  201.50  574.00 
**  Asia Malt 50/50  397.00  529.50  197.00  560.00  191.00  551.50  201.50  565.50 

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 -
May 29, 2007  
 France   701,134  661,772  774,761  674,140  648,338  440,829 
 Germany   468,314  408,063  422,047  295,876  236,735  208,983 
 Belgium   296,368  287,850  317,292  418,344  551,396  481,916 
 Bulgaria   1,090 
 U.K. 350,621  294,995  443,501  201,892  190,862  106,416 
 Finland   91,890  100,758  114,165  64,986  79,357  57,746 
 Denmark    96,812  94,791  90,452  74,743  68,809  69,844 
 Sweden   101,000  76,916  78,369  88,840  96,100  70,550 
 Netherlands   51,310  66,219  80,703  49,128  92,383  67,550 
 Ireland   35,145  31,140  38,900  56,924  7,001  2,250 
 Austria   8,840  8,620  60,211  16,954  38,932  19,693 
 Spain   2,400  5,640  10,000 
 Greece   1,744  1,306  979  130 
 Portugal   221  85  695  850  1,088  893 
 Czech Republic       34,340  82,062  77,036  39,647 
 Poland       7,604  32,084  167 
 Hungary       2,830  85,792  16,865  3,997 
 Slovakia       1,000  76,916  75,863  21,973 
 Lithuania      54  72 
 Total EU   2,205,799  2,038,157  2,477,849  2,219,661  2,180,986  1,593,447 

  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 - May 29, 2007   5,100 
   
  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 - May 29, 2007   27,357 
Newsletter SummaryTop
Graph of the week


These Days in Business History
June 11
1644 Florentine scientist describe invention of barometer
1742 Benjamin Franklin invents his Franklin stove
1816 Gas Light Co of Baltimore founded

June 12
1849 Gas mask patented by Lewis Haslett, Louisville, Kentucky
1928 After more than 130 years of trading, the New York Stock Exchange finally has its first day on which more than 5 million shares trade hands, as total daily volume hits 5,252,425 shares.
1991 Microsoft releases MS DOS 5.0

June 13
1933 Financial and Economy World conference opens, 66 countries
1934 Black-McKeller Bill passes causes Bill Boeing empire to break up into Boeing United Aircraft [Technologies] and United Air Lines
1975 1st oil pumped from North Sea oilfield
Agenda
June 2007:
Junifest - Bratislava Beer Festival
Japan-Asia Beer Cup 2007, Tokyo
InterFood Mongolia
American Beer Fest
ASBC Annual meeting
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


November 2007:
The International Hop Growers’ Convention (IHGC) Meetings, Germany
International convention for the drink technology and PET industry, India




More events are available on site e-malt.com
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