Carlsberg A/S, said 2007 third-quarter profit rose 29 percent on sales in Eastern Europe, in a press release, November 7.

Business development

Beer sales in the first nine months of 2007 totalled 63.2m hl (calculated pro rata), an increase of 14%, which breaks down into 13% organic growth and 1% through acquisitions. The parts of the business operating in the growth markets of Asia and Eastern Europe, including BBH, saw the strongest growth. There was also a small increase in sales in the mature markets of Western Europe delivering market share growth in all key markets. The international brands Carlsberg and Tuborg continued to grow, achieving volume increases of 5% and 19% respectively, primarily as a result of strong growth in several of BBH’s markets. Net revenue increased by 10% to DKK 33,932m (DKK 30,798m in 2006). All regions made improvements during the period. The biggest was at BBH, which generated organic growth of 36%, but there was also strong organic growth of 22% in the rest of Eastern Europe. These two regions together accounted for DKK 2.6bn of the total revenue growth of DKK 3.1bn. Changes in the relative breakdown of revenue between the individual regions led to a lower ...More Info

Molson Coors Brewing Company reported higher income and earnings per share from continuing operations on increased net sales for the Company’s fiscal 2007 third quarter, in a company press release, November 7. Key results for the Company’s fiscal third quarter ended September 30, 2007, compared to the fiscal third quarter ended September 24, 2006, include the following:

* Net sales increased 6.9 percent to $1.69 billion. * Sales volume declined 0.2 percent to 11.2 million barrels, or 13.2 million hectoliters (HLs), primarily due to weather-related decline in sales in the Company’s U.K. business; * Total Company sales to retail (STRs) rose 2.1 percent. U.S. STRs rose 6.4 percent, while Canada STRs were up 0.8 percent. U.K. STRs declined 6.9 percent. * Cost of goods sold increased 8.8 percent to $987.3 million. * Marketing, general and administrative expenses rose 6.2 percent to $461.1 million. * Net income was $134.7 million * Excluding special and other one-time items, income from continuing operations (after tax) was $173.2 million, or $0.95 per diluted ...More Info

Efes Breweries International NV said it is consolidating its stake in Krasny Vostok Brewing Group into Moscow Efes Brewery (MEB), its operating subsidiary in Russia, for about $368 million, AFX News Limited reported November 6.

Krasny Vostok is the company's other operating unit in Russia.

MEB will finance the purchase partially with the proceeds of a previously announced ruble bond issue, and the balance through a capital increase.

San Miguel Brewery, Inc., the largest beer producer in the country, saw an 11.74% increase in net income during the nine-month period, Business World reported November 6.

In its prospectus for its planned initial public offering, the company said it saw profits of P5.71 billion for the period, from P5.11 billion the same period last year.

Net sales grew by 8.56% to P31.96 billion from P29.44 billion, San Miguel Brewery said. It added that cost of sales reached P16.59 billion during the three quarters, 7.38% higher from P15.45 billion the same period last year.

Gross profit, meanwhile, amounted to P15.37 billion, up from P13.98 billion while operating income rose by 12.71% to P8.78 billion from P7.79 billion.

San Miguel Brewery said that it intended to increase its market share by pursuing targeted marketing efforts in the regions and localities where market share is lower such as in specific areas in North and South Luzon as well as in Visayas and Mindanao.

"The company intends to accomplish this by selecting specific products in appropriate packaging to match the competing products and brands. The company also intends to increase its product visibility in these markets through tactical consumer promotions and improve outlet penetration through persuasive selling and ...More Info

Brazilian brewer Companhia de Bebidas das Americas, or AmBev, has started the process of acquiring the brand of local brewer Cintra for $10 million, the company said, according to Dow Jones Newswires, November 6.

The deal complements the purchase of Cintra's production assets for $150 million in April.

"Ambev and Cintra are taking the necessary steps to implement the transfer of the brand to Ambev for approximately $10 million," Ambev said.

Earlier in the day, an Ambev spokeswoman had said that the deal had been closed.

At the time of the sale of the production units, Cintra's controlling shareholder, Goldensand Comercio e Servicos, maintained an option to sell the brand and distribution rights until Oct. 28. That deadline was later extended to Nov. 5.

But Ambev had stepped in, agreeing to buy the brand at the pre-agreed sum of $10 million after no other interested parties were forthcoming.

Ambev said it has no plans to withdraw the Cintra brand and will continue investing in the company.

Cintra had a 1.12% market share in Brazil in April and 6% market share in Rio de Janeiro state.

Ambev's main objective was to increase production capacity, especially for carbonated and non-carbonated soft drinks, in Rio de Janeiro and to block local ...More Info

The best option for Scottish & Newcastle shareholders is a sale of the business, according to a global brewing report by Citigroup, The Herald reported November 6.

"We expect S&N to pursue a vigorous defence of its shareholders' interests, but in our view maximum value appears to lie with the company being acquired," says the report.

It says investors believe that S&N is using its arbitration proceedings in Stockholm as a tactic, and that "the prospect of lengthy court proceedings and an uncertain outcome may persuade Carlsberg/ Heineken to raise their offer such that S&N management ceases to pursue the case."

Citigroup says Carlsberg is "highly unlikely" to want to relinquish its joint ownership of BBH, the subject of the Stockholm arbitration, while S&N shareholders are likely to be reluctant to allow or fund S&N to buy Carlsberg's stake at a very high price, even if it were possible.

The arbitration might help secure a high price for the Scottish brewer's BBH stake, but to maximise value fully that would need to be combined with a sale of the whole business, says the report.

It also questions whether S&N shareholders "would approve a 'defensive' move such as an acquisition or merger with another party."

China has become a major exporter of malt. Last week two Chinese maltsters won the tender in Taiwan for deliveries of 163.000 tons of malt from 2008 till 2010, analysts reported November 2.

Price levels were very high, but no other maltster in the world was able to offer malt for shipment in 2008. Estimates are that China shipped 200.000 tons of malt in 2007 and will export up to 300.000 tons next year.

Malting barley prices had exploded from EUR 165,- to 335,- (FOB Creil, basis July) from February till September of this year, according to analysts, November 2. Early and constant purchases by the industry had found less and less sellers in the major markets of Western and Northern Europe. Crop results confirmed the earlier anxiety of the industry, yields were down, the quality (grain size and protein) was poor, fusarium, sprouting and pre-germination had affected especially the later harvested lots. Trade and industry adjusted to the precarious situation, especially barley with higher protein was accepted by all Continental maltsters. The U.K. and Scandinavia fared better. They can deliver round about a Million tons of correct malting quality barleys to their Continental neighbours.

In October markets fell still. As a consequence prices dropped, but the amount of business done was negligible. In France 2row spring barley, July, FOB Moselle, traded at EUR 320, and in Denmark EUR 310,- was paid for October shipment. The further development is difficult to judge, will malting barley follow wheat and other grains on a steady and steep path down, or will quality problems, export demand and the lack of imports drive markets up again or at ...More Info

EU barley crop estimates have stabilized between 57 and 58 Mill. tons, feed use will be no more than 36 Mill. tons, about 4 Mill. tons less than last year, according to analysts, November 2.

Exports to third countries are anticipated between 4 and 5 Million tons, because of a lack of competition from the Black Sea and Australia. The proximity of the deficit markets in North Africa and the Middle East plays a larger role than in former years, as ocean freight rates are sky-high. Export licences booked in the first four months of the crop year amount to 2.1 Mill. tons. The anticipated exports will take EU year end stocks to a minimum level, therefore markets will likely remain firm.

Japan boosted its barley and wheat import budget after record grain prices exhausted this year's allocation, causing the first funding shortfall for the purchases in almost three decades, Bloomberg reported November 6.

The government increased the budget by 55 billion yen ($480 million), or 23 percent, to 298 billion yen for the year ending March 31, the Finance Ministry said in a statement. Funding was 203 billion yen last fiscal year.

Japan relies on imports for 71 percent of its food barley. Rising costs are forcing companies such as Kirin Holdings Co., Japan's biggest brewer, and Yamazaki Baking Co. to increase prices.

``We ran out of money for wheat and barley imports by the end of October,'' said Youichirou Tomiyoshi at the Ministry of Agriculture, Forestry and Fisheries Grain Trade Division. ``We may have to add more money by the end of the current fiscal year if costs to import the grains stay high,'' he said by phone today.

Barley for March delivery closed at C$198.10 a ton on the Winnipeg Commodities Exchange, gaining 34 percent this year.

Japan's food barley imports are forecast to fall to 270,000 tons from 380,000 tons, according to the ministry. Australia is the largest ...More Info

A major sale of Canadian malting barley to China is expected to keep U.S. prices strong in the near term, an official said, The Minot Daily News reported November 7.

Steve Edwardson, the executive director of the North Dakota Barley Council, said the approximate 27.6 million-bushel sale of Canadian malting barley to China’s Green Food Development Center will likely open new markets for North Dakota barley that may have otherwise gone to western Canadian producers, and strengthen others in which North Dakota farmers were in competition with the Canadian Wheat Board.

“I am uncertain of the net effect on North Dakota barley producers, but one could estimate that it would help to keep prices strong,” Edwardson said. “Japan has been purchasing a considerable amount of barley from the U.S., and with less overall supply available to choose from in a generally short market, the net effect should be firm prices.”

Coincidentally, the Australian Bureau of Agricultural and Resource Economics issued a statement last week that indicates the Australian barley crop will be reduced by as much as 20 percent this harvest because of intense drought throughout that nation.

That should have a subsequent, positive effect on North Dakota’s exports, according to Edwardson.

It’s already beginning ...More Info

ABB Grain Ltd announced record harvest pool first advances of $325/tonne for malting barley and $262/tonne for feed barley, following the opening of its 2007/2008 harvest barley pools, according to ABB’s press release, November 7.

ABB Grain’s managing director, Michael Iwaniw, said the figures represented “unprecedented first advances” and reflected continued, exceptionally high international barley prices.

This week ABB opened its 2007/2008 harvest barley pools quoting gross pool returns of $375-$385/tonne for malting 1 and $300-$310/tonne for feed 1 grade.

Mr Iwaniw said the pool advances took into account current market conditions including international barley prices, the value of the Aussie dollar and ship chartering rates.

“Growers have witnessed record prices for barley and this has been driven by a combination of reduced supply in the international and domestic markets,” he said. “ABB has been able to capture these prices with some sales to regular customers which are reflected in the price estimates.

“As always we will be endeavouring to maximise pool returns and we believe growers will find these pool estimates for the 2007/2008 crop and the first advances, very attractive.

“ABB, as usual, will continue its renowned reliability of payment to growers. Once growers have delivered barley to our pools, the average payment time ...More Info