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E-Malt.com Newsletter 51a
December 17 - December 19, 2007
Open!
Click here to get full size Newsletter


Quote of the week
"Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion."
Jack Welch
Currency Rates
Base Currency: Euro, EUR
on 19-December-2007

1 EUR = 1.4401 USD
1 EUR = 0.7137 GBP
1 EUR = 1.4501 CAD
1 EUR = 1.6759 AUD
1 EUR = 163.01 JPY
1 EUR = 2.6128 BRL
1 EUR = 35.5984 RUB
1 EUR = 10.647 CNY
Base Currency: US Dollar
on 19-December-2007

1 USD = 0.6944 EUR
1 USD = 0.4956 GBP
1 USD = 1.0069 CAD
1 USD = 1.1636 AUD
1 USD = 113.19 JPY
1 USD = 1.8143 BRL
1 USD = 24.7187 RUB
1 USD = 7.3931 CNY
Currency Rates, EUR/USD Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend
December 19, 2007
Crop 2007 Crop 2008
2rs Barley €294.0-296.0 1.03% 2rs Barley €276.0-278.0 1.09%
6rw Barley €262.0-264.0 1.64% 6rw Barley €245.0-247.0 2.07%
2rs Malt €544.0-546.0 1.02% 2rs Malt €511.5-513.5 1.18%
6rw Malt €504.0-506.0 1.41% 6rw Malt €472.0-474.0 1.72%

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.


Top Industry News

UK: SABMiller’s UK sales boosted driven by higher consumer preference for premium beers ...Click here
China: Kingway Brewery may suffer loss in 2007 ...Click here
Romania: Beer consumption may exceed this year's record highs in 2008 ...Click here
India: SABMiller wins $500-million US case, may bring Miller brand to India ...Click here
UK: Carlsberg, Heineken have a month for formal S&N bid ...Click here
Denmark & Laos: Carlsberg to expand its business in Laos ...Click here
Vietnam: Country’s two biggest breweries to be equalized next year ...Click here
Australia: Malting barley prices forecasted to rise to AU$346 a tonne in 2007/08 ...Click here




Netherlands: SABMiller and Grolsch to request memorandum approval in the takeover deal ...More Info
Canada: Fort Garry Brewing brewed gluten-free beer ...More Info
Germany: German breweries produce kosher and alcohol-free beers for Jews, Muslims ...More Info
Belgium: InBev shares fall on talk of 4 million company’s shares placing by JPMorgan ...More Info
Australia: Lion Nathan gains regulatory clearance to buy J Boag & Son ...More Info
USA: Starr Hill Brewery enters distribution agreement with Anheuser-Busch ...More Info
New Zeeland: Mainzeal wins construction contract for Lion Nathan’s AU$250 million brewery ...More Info
Canada: Sleeman Breweries appoints new president and chief operating officer from Japan ...More Info
Ukraine: January-November 2007 barley sales averaged UAH883.5 per MT, up 85.5% against 2006 similar ...More Info
Go to our news database with more than 11912 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

UK: SABMiller’s UK sales boosted driven by higher consumer preference for premium beers

SABMiller plc, one of the world’s leading brewers, announces that its UK sales are rising strongly, driven by an emerging consumer preference for more exotic and distinctive premium beers, according to company’s press release, December 15.

In the six months to September 2007, sales of SABMiller’s UK subsidiary, Miller Brands, rose by 42%, led by Italian brand Peroni Nastro Azzurro, Pilsner Urquell from the Czech Republic and Polish brands Tyskie and Lech. The group’s Peruvian brand, Cusqueña, which is imported directly from Peru, has also seen UK sales rise by 35%, with strong gains made in London and Manchester.

“The UK premium lager market is experiencing unprecedented change,” says Alan Clark, Managing Director of SABMiller Europe. “Some of the country’s most enduring premium beers are seeing declines following a number of years of aggressive expansion. As these big brands lose their allure, consumers are experimenting with a new generation of more distinctive beers, a development which SABMiller is well-placed to capitalise on.”

Gary Whitlie, Managing Director of Miller Brands, continues:

“A new space is opening up at the top end of the UK premium lager market, in which beers with distinctive taste profiles, authentic provenance and genuine import status are thriving. ...More Info


China: Kingway Brewery may suffer loss in 2007

Kingway Brewery Holdings Limited will be likely to suffer a loss for the full year 2007, the Hong Kong-listed company recently forecasted, according to SinoCast, December 18.

The loss is mainly caused by operating strategies, analyzed a top executive for China Resources Snow Breweries. Kingway have invested CNY 3 billion in building plants in Dongguan, Shantou, Tianjin, Xi'an, and Chengdu in recent two years.

Another major reason is the increasing competition in South China's Guangdong market. The province's beer production capacity has reached 5 million tons currently and output in 2007 will amount to 3.2 million tons, said Guo Yingxin, director of the Guangdong Provincial Alcohol Industry Association Beer Branch.

The production capacity in Guangzhou, the province's capital city, is 1.5 million tons each year. Beer production lines in other cities, like Shenzhen, Shantou, and Foshan, are also being built or expanded.

Profit from per ton beer in the province was between CNY 300 and CNY 400 years ago, five or six times higher than the average level in China. However, it has now slid to over CNY 100, Guo said.

Kingway also changed its product structure in order to snatch a bigger market share, noted a regional manager of the company. The proportion of ...More Info


Romania: Beer consumption may exceed this year's record highs in 2008

The beer market is likely to exceed 1.4bn euros next year, although major brewers are not counting on two-digit growth rates in 2008, after this year's record highs, Ziarul Financiar reported December 13.

In fact, multinationals did not expect to register above 10% increases in early 2007, but the hot weather, doubled by PET beer sales and consumers' rising purchasing power led to a sales growth rate of around 20%.

As a result, in line with ZF estimates, based on data released by companies, beer sales are forecast to exceed 21 million hectolitres this year, which would generate a market worth around 1.2bn euros, according to statements made by industry players. However, considering the beer market in the first 9 months of this year increased by 33.3% against the same period last year (according to market research firm MEMRB) the growth rate could exceed 20% in 2007. "(...) Starting next year, the domestic beer market will start posting increases of around 5%," estimates Shachar Shaine, URBB chairman.

Edwin Botterman, Heineken Romania chairman and CEO, shares the same opinion. The most optimistic player on the market is Ursus Breweries, which believes the market will maintain the same growth rate, due to the strong increase ...More Info


India: SABMiller wins $500-million US case, may bring Miller brand to India

SABMiller has successfully wrapped up a legal battle in the US that prevented rolling out of flagship Miller beer in India, The Economic Times reported December 10. A Wisconsin court has dismissed a $500-million lawsuit by India Breweries Inc, a Canada-based entity, against Miller Brewing Company for allegedly backtracking on a 10-year licensing agreement to brew and sell Miller brands in India.

The Toronto-based petitioner said the licensing agreement was signed in 1999 to sell Miller High Life and other brands, and initiated legal proceedings three years ago. When contacted, Sundeep Kumar, director, corporate affairs, SABMiller India, said the company faced no legal hurdles, if it decided on launching Miller in India, after the Wisconsin court summarily dismissed the petition.

The petitioner alleged that it had entered into arrangement with Mohan Meakin Ltd for brewing Miller and had also lined up other brewing options after a Miller team expressed dissatisfaction. However, Miller allegedly dragged its feet on exploring possibilities and rejected the other breweries over trivial alleged deficiencies before terminating the licensing agreement in 2001. South African Breweries (SAB) and Miller Brewing Company merged in 2002, signaling the biggest consolidation in the global brewing industry.

SABMiller is considering the viability of bringing in ...More Info


UK: Carlsberg, Heineken have a month for formal S&N bid

Following recent representations made by the advisers for S&N, the Panel Executive has been considering the application of Rule 2.4(b) of the Code to the approach by the Consortium to S&N, according to Scottish & Newcastle’s press release, December 17. Following discussions with all parties’ advisers, the Panel Executive has ruled that, unless the Panel Executive consents otherwise, the Consortium must, by 12 noon on 21 January 2008, either announce a firm intention to make an offer for S&N under Rule 2.5 of the Code or announce that it does not intend to make an offer for S&N.

In the event that the Consortium announces that it does not intend to make an offer for S&N, the Consortium and any person acting in concert with it will, except with the consent of the Panel Executive, be bound by the restrictions contained in Rule 2.8 of the Code for six months from the date of such announcement.


Denmark & Laos: Carlsberg to expand its business in Laos

Carlsberg has strengthened its position in the beverage market in Laos following the completion of the acquisition of 70% of the shares in Lao Soft Drink Co Ltd. – the bottler of Pepsi in Laos, according to brewer’s press release, December 17. The remaining 30% of the shares are held by the Government of Laos. Holding a 90% market share the company is a major player in the soft drinks market in Laos with brands such as 7-Up and Mirinda.

The production facility is located in the capital Vientiane, and has 290 employees and a capacity of approx. 400,000 hl.

Henrik Juel Andersen, Managing Director of Carlsberg Indochina said: “We believe in the brands and in the Company’s management. It is a very professionally run operation in every aspect, the factory is of international standard, and produces high quality products. Carlsberg is excited about the opportunity to further strengthen the operation in close cooperation with the Government and the Company’s management”. Carlsberg and the Government are already co-operating via the 50/50 joint venture, Lao Beer Co. Ltd. producing the famous Beer Lao, the leading beer brand in Laos.


Vietnam: Country’s two biggest breweries to be equalized next year

Vietnam's two breweries will complete their equalization plans and then make initial public offerings (IPOs) in the first quarter of next year, local newspaper Vietnam Investment Review reported, according to Xinhua, December 17.

The Saigon Brewery Corporation (Sabeco) would not choose a foreign strategic partner for its IPO, but the Hanoi Brewery Corporation (Habeco) would, said deputy minister of Industry and Trade Bui Xuan Khu.

He said Carlsberg was chosen as Habeco's foreign strategic investor, and would come in for a 10-percent stake in the northern beer maker. Meanwhile, Sabeco will sell off 20 percent of its chartered capital at its IPO.

Sabeco, Vietnam's biggest brewery, has a chartered capital of 6.4 trillion Vietnamese dong (VND) (400 million U.S. dollars), and Habeco 2.3 trillion VND (nearly 143.8 million dollars). This year, Sabeco is estimated to make total revenues of over eight trillion VND (500 million dollars), and Habeco nearly 2.5 trillion VND (some 156 million dollars).

Vietnam is estimated to consume over two billion liters of beer and alcohol in 2010, up from 1.7 billion liters in 2007, the newspaper said.


Barley News

Australia: Malting barley prices forecasted to rise to AU$346 a tonne in 2007/08

Australian malting barley prices are forecast to rise to AU$346 a tonne from AU$328 in 2006/07 and AU$202 in 2005/06, ABARE reported December 19.

"However, the ability of growers to capitalise on these prices has been hampered by poor seasonal conditions," ABARE's executive director, Phillip Glyde, said in the statement.

Scientific Digest

The process of vertical coordination and its consequences within the beer commodity chain

Vertikalni koordinace a jeji projevy v komoditní vertikale piva E. VESELSKA Mendel University of Agriculture and Forestry, Brno, Czech Republic

Abstract
The paper aims to identify the potential benefits from vertical coordination within the selected commodity chain. The problem is applied to the beer commodity chain because of its high importance in the Czech agri business and foreign trade. On the basis of the vertical analysis of the chosen commodity chain, a mathematic model of consumer price simulation is created and the existence of vertical coordination is verified in the analysed commodity chain. This model assumesthat input price increases are transmitted to consumers. The retail prices of beer a resimulated by holding technology and input-output relationships constant, while production as well as marketing costs change according to the changes in input prices. The simulated retail price is then compared with the actual retail price to indicate productivity gains resulting from vertical coordination passed on to consumers. The result sof the Model of Retail Price Simulation showt hat Czech brewery industry was in the observed period (1994–2002) vertically coordinated. Key words: retail price simulation, vertical coordination, agri-food chain and beer
... Load full article, 8 pages, 317 Kb, PDF file

Malting barley prices.
French barley prices. Nominal prices
EURO = USD 1.4401 December 19, 2007 
 Crop year   2007   2008 
 Parity   FOB Creil   FOB Creil 
 Position   July 2007   July 2008 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  297.00  428.00  279.00  402.00 
2RS  Prestige  296.00  426.50  278.00  400.50 
2RS  Cellar  295.00  425.00  277.00  399.00 
2RS  Sebastien  294.00  423.50  276.00  397.50 
2RS  Astoria  294.00  423.50  276.00  397.50 
2RS  Cork   294.00  423.50  276.00  397.50 
6RW  Esterel   263.00  379.00  246.00  354.50 

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

Theoretical malt prices

EURO = USD 1.4401 December 19, 2007
Crop year  2007 
Parity  FOB Antwerp 
Position  Dec 2007 - Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  547.50  788.50  571.50  822.50  563.50  811.00  577.50  831.50 
2RS  Prestige  546.50  787.00  570.00  821.00  562.00  809.50  576.00  829.50 
2RS  Cellar  545.00  785.00  569.00  819.00  560.50  807.50  575.00  828.00 
2RS  Sebastien  544.00  783.50  567.50  817.50  559.50  805.50  573.50  826.00 
2RS  Astoria  544.00  783.50  567.50  817.50  559.50  805.50  573.50  826.00 
2RS  Cork   544.00  783.50  567.50  817.50  559.50  805.50  573.50  826.00 
2RS   Average price  545.00  785.00  569.00  819.00  560.50  807.50  575.00  828.00 
6RW  Esterel   505.00  728.50  529.50  762.50  521.50  750.50  535.50  771.00 
Asia Malt 70/30  533.50  768.00  557.00  802.00  549.00  790.50  563.00  811.00 
**  Asia Malt 50/50  525.50  756.50  549.00  790.50  541.00  779.00  555.50  799.50 


EURO = USD 1.4401 December 19, 2007 
Crop year  2008 
Parity  FOB Antwerp 
Position  Oct 2008 - Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO USD EURO  USD EURO USD  EURO  USD
2RS  Scarlett  514.50  741.50  538.50  775.50  530.50  763.50  544.50  784.00 
2RS  Prestige  513.50  739.50  537.50  773.50  529.00  762.00  543.50  782.50 
2RS  Cellar  512.50  737.50  536.00  771.50  528.00  760.00  542.00  780.50 
2RS  Sebastien  511.00  736.00  534.50  770.00  526.50  758.50  540.50  778.50 
2RS  Astoria  511.00  736.00  534.50  770.00  526.50  758.50  540.50  778.50 
2RS  Cork   511.00  736.00  534.50  770.00  526.50  758.50  540.50  778.50 
2RS   Average price  512.50  737.50  536.00  771.50  528.00  760.00  542.00  780.50 
6RW  Esterel   473.00  682.50  498.00  717.00  489.50  705.00  504.00  725.50 
Asia Malt 70/30  501.00  721.50  524.50  755.50  516.50  743.50  530.50  764.00 
**  Asia Malt 50/50  493.50  710.50  517.00  744.50  509.00  732.50  523.00  753.00 
-->

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

Canada: Barley Supply and Disposition as of December 12, 2007

  2004-2005   2005-2006   2006-2007   2007-2008 f 
  Seaded area, '000 ha 4,678  4,143  3,690  4,397 
  Harvested area, '000 ha 4,050  3,634  3,223  3,998 
  Yield, tonne/ha  3.26  3.21  2.97  2.75 
  Production, '000  metric tonnes 13,186  11,678  9,573  10,984 
  Imports, '000 metric tonnes 83  46  43  35 
  Total Supply, '000 metric tonnes 15,962  15,159  12,905  12,511 
  Exports, '000 metric tonnes  1,975  2,975  1,988  2,800 
  Food & Industry Use, '000 metric tonnes 268  167  147  150 
  Feed, Waste, Dockage, '000 metric tonnes 9,417  8,404  8,896  7,861 
  Total Domestic Use, '000 metric tonnes 10,073  8,894  9,426  8,411 
  Carry-out Stocks, '000 metric tonnes 3,435  3,289  1,492  1,300 
  Average Price, CA$/tonne 112  110  165  180-200 

f: forecast, Agriculture and Agri-Food Canada, December 12, 2007
Graph Of The Week



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Agenda