SABMiller plc, one of the world’s leading brewers with operations and distribution agreements in over 60 countries across six continents, reports its interim (unaudited) results for the six months to 30 September 2007, in a press release, November 15.

Operational Highlights

• Group lager volumes up 15% to 135 million hectolitres (hl), organic growth of 11%

• EBITA up 14%, and 10% on an organic constant currency basis

• Double digit volume growth in Europe with EBITA up 29%

• Miller returns to growth in the US with organic sales to retailers up 1.4% - EBITA up 19%

• Lager volumes in Latin America up 8%, in line with expectations - investment in brands and distribution depress margin in the current period

• Africa & Asia lager volumes increase by 29% - driven by China and India

• South Africa lager volume growth of 2% despite the expected loss of premium volumes

• Increased capital investment to provide for continuing growth

Graham Mackay, Chief Executive Officer of SABMiller, said:

"This has been a good start to the year, demonstrating the strength of our brand portfolio and the health of our businesses. We have delivered another excellent performance in Europe, a pleasing return to growth in North America, and our Asian businesses have continued their momentum and made market share ...More Info

French beer sales volumes are down 4% in 2007 or 2% in terms of money even if the Rugby World Cup brought foreign beer drinkers, according to Gerard Laloi, President of French Brewers, La Depeche published November 15.

The arrival of British, Australian, South-African and New Zeeland rugby fans increased beer consumption by 1.2% or 0.4% in terms of money compared to 2006. But this is not enough to compensate the consumption decrease in a bad weather summer.

Due to malt price which has doubled this year, the malt representing 7% of final product, the price of beer raised by 8%.

Denmark headquartered global premium beer brand Carlsberg is in the process of setting up two greenfield manufacturing units in India, according to Debdatta Das, November 15.

“We are setting up two new beer manufacturing units in Alwar, Rajasthan and Aurangabad in Maharashtra,” said Joakim Sande, Marketing Director, South Asia Breweries Pvt Ltd. Both the facilities will have a capacity of 0.45 million hectolitres each per annum.

“Both plants will become operational between the first and second quarter of 2008 calendar year,” he added.

The two units will primarily manufacture Carlsberg super premium beer as well as Palone, the company’s mass segment strong beer. While Carlsberg will be a category creator, being the only super premium beer in India, Palone will be fighting it out with stalwarts such as Kingfisher and Haywards in the domestic market.

The company has also recently signed a joint venture with West Bengal-based Parag Breweries, to manufacture both Carlsberg and Palone, having a capacity of 0.15 million hectolitres per annum. “Though Carlsberg will be our primary focus area, we also realise the immense potential in the mass segment. Therefore, we decided to launch Palone as well,” said Sande.

While Palone is priced at par with its competitors Kingfisher and Haywards, Carlsberg ...More Info

Total beer sales in the UK off-trade rose just 0.3 per cent last year, the latest Nielsen figures have revealed, Off Licence News reported November 16.

The washed-out figures are mainly thanks to the summer that never happened, and the UK's top brands are counting the cost of a year with no major football tournament.

Market leader Stella Artois's sales dropped 5 per cent to £518 million, Carling's fell 3 per cent to £361 million and Budweiser's 8 per cent to £151 million.

As might be expected in a category regularly criticised for being sold below cost as a footfall driver, total beer volumes crept up a little more than value sales, by 0.8 per cent to 18.8 billion hl.

The wet summer also brought poor cereal crops and pushed up prices for raw materials - and many brewers are warning that beer prices, which have not seen inflation for years, will finally have to rise.

Neil Jardine, take-home director for Greene King, said: "My fear for next year is around rising costs, which is at odds with some retailers who believe it is all about driving prices down."

He added there were rises in the cost of glass, of which there is a shortage in ...More Info

Heineken and Carlsberg (the “Consortium”) announce that they have made an increased proposal to the Board of Scottish & Newcastle plc (“S&N”) under which the Consortium would offer to acquire S&N for 750 pence per share in cash (the “Increased Proposal”), according to companies’ releases, November 15. The Consortium believes it is important that S&N shareholders are fully informed of the merits of the Consortium’s Increased Proposal in advance of S&N’s trading update on 20 November 2007. Key highlights of the Consortium’s Increased Proposal are:

• a full and fair offer price of 750 pence per share in cash, valuing the group at an equity value of £7.3bn and an enterprise value of approximately £9.7bn, substantially in excess of the standalone independent value of S&N;

• an increase of 30 pence per share;

• a premium of 41% to the share price of 531 pence being the closing price on 28 March 2007 (the date immediately before speculation first arose around a possible offer for S&N);

• a historic transaction multiple of 13.6x S&N’s EBITDA for the year ended 31 December 2006 (materially higher than those paid by S&N for its recent major acquisitions); and

• a high degree of certainty for S&N shareholders.

S&N Board recommendation and limited confirmatory due diligence ...More Info

SABMiller PLC said the Russia is one of the most exciting beer markets in the world but has declined to reiterate comments that Western European markets are 'singularly unattractive', according to Thomson Financial, November 15.

In a conference call, chief executive Graham Mackay said: 'The Russian beer market is still growing very rapidly. It's one of the most exciting markets in the world and has been for some years now and obviously attracts a lot of attention.'

Mackay said SABMiller has a strong business in Russia -- growing in 'high-ish double-digits' consistently for at least the last five years -- though it is small and operates only in the premium beer segment.

'It's highly profitable for its size but it is not a mainstream player at all, so it doesn't have the bulk or scale of the three bigger players,' he said, adding the group has been rapidly expanding its business in the country.

'We've effectively been in an out-of-stock situation there for just about every summer for the last three of four years, so we have a capacity expansion going on and we are very pleased with our progress,' said Mackay.

The group earlier this year unveiled plans to invest 170 mln usd in ...More Info

Cargill announced that it will expand its malting facility in Rosario, Argentina, according to the company’s report, November 15. The company plans to double the size of the Rosario facility.

Vendor selection will begin immediately and construction is expected to begin in early 2008. The expansion is expected to be complete and ready for malt production in early 2010.

“This new malt production capability will complement Cargill’s capacity at our Bahia Blanca, Argentina plant and will service brewing demand from current customers in the region,” said Doug Eden, president, Cargill Malt. “The addition to the Rosario facility will add 10 to 20 permanent jobs in both the malting and administrative areas,” he said.

According to Eden, the expansion will maximize the existing malting operation in Rosario, as well as increase synergies with the broader Cargill grain origination infrastructure and port facilities.

In addition, the expansion will extend Cargill’s relationship with local producers by adding significant new demand for high quality malting barley.

About Cargill

Cargill is an international provider of food, agricultural and risk management products and services. With 158,000 employees in 66 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed. For more information, ...More Info

Germany 2006-07 malt production was of 1.740 Mill. tons; in July 2007 of 160.000 tons, according to analysts, November 2. If that production level is maintained, the crop year production would be 1.9 Mill. tons,

France 1.5 Mill. tons of barley use is forecast for the crop year, July/August figures confirm the estimate. Figures are unchanged from last year, but 125.000 tons down from 2005/06.

U.K. barley use was 260.000 tons in the first 8 weeks of the crop year, which would result in a total usage of 1.7 Mill. tons, about unchanged from last year.

For 2007-08, barley production is estimated to increase by 23% to 11.8 Mt, close to the 10-year average, due to higher seeded area, according to Agriculture and Agri-Food Canada, November 15. However, supply is expected to only increase slightly due to significantly lower carry-in stocks.

Crop quality is slightly below average. Exports are forecast to rise sharply, while domestic use is expected to decrease slightly. Carry-out stocks are projected to decrease marginally. The average off- Board feed barley price (No.1 CW I/S Lethbridge) is forecast to increase from 2006-07 due to strong export demand.

The USDA reduced its barley crop estimate of the USA to 4,612 Mill. tons, according to analysts, November 2.

Nevertheless export sales of 864.000 tons have been notified, almost 20 % of the crop. The Midwest harvested a fine crop of 6row barley, but the Western 2row barley suffered from the summer draught. That is why imports from Canada will be sharply up from last year. Malting barley markets are very firm. First acreage estimates for 2008 are unchanged from this year.

Agroindustrial facilities of the Open Society "Brewing Company "Baltika" in 2007 have collected 150 thousand tons of barley, up 87.5% the similar parameter of the last year (80 thousand ton), AKM reported November 13.

Annually, collection of barley in the company increases up 15-20% in view of manufacture growth. The crop of barley collected in 2007 has made 25% of the company's needs.

The basic areas under crops of barley of "Baltika" are located in the Ryazan, Voronezh, Tambov and Tula areas, and also in the Rostov area where the company spends experiment on reception of winter barley.

"Baltika" since 1996 is the leader of the Russian brewing market, owns 10 breweries and 3 malt enterprises in 9 regions of Russia. The basic shareholder is Baltic Beverages Holding AB (BBH) which owns 86.32 % in the authorized capital of "Baltika" and 91.48 % of voting shares. In 2006 "Baltic" united with companies "Vena", "Pikra" and "Yarpivo".