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E-Malt.com Newsletter 05b
January 31 - February 03, 2008
Open!
Click here to get full size Newsletter


Quote of the week

"Opportunity is a haughty goddess who wastes no time with those who are unprepared."
George Clason
Currency Rates
Base Currency: Euro, EUR
on 01-February-2008

1 EUR = 1.4854 USD
1 EUR = 0.7472 GBP
1 EUR = 1.4819 CAD
1 EUR = 1.666 AUD
1 EUR = 158.04 JPY
1 EUR = 2.621 BRL
1 EUR = 36.2961 RUB
1 EUR = 10.6847 CNY
Base Currency: US Dollar
on 01-February-2008

1 USD = 0.6733 EUR
1 USD = 0.503 GBP
1 USD = 0.9976 CAD
1 USD = 1.1216 AUD
1 USD = 106.399 JPY
1 USD = 1.7645 BRL
1 USD = 24.4348 RUB
1 USD = 7.193 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend
February 01, 2008
Crop 2007 Crop 2008
2rs Barley €311.0-313.0 0.32% 2rs Barley €299.0-301.0 0.33%
6rw Barley €267.0-269.0 1.11% 6rw Barley €257.0-259.0
2rs Malt €571.5-573.5 0.09% 2rs Malt €545.5-547.5 0.27%
6rw Malt €516.0-518.0 0.67% 6rw Malt €493.0-495.0

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 barley. The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


Top Industry News

USA: Anheuser-Busch reports increased sales and earnings for the fourth quarter and full year 2007 ...Click here
Czech Republic: Beer output grows by 1% in 2007 ...Click here
Chile: CCU 2007 profits up 32% on higher revenue ...Click here
Australia: Foster’s, Lion Nathan, Coopers to increase beer prices ...Click here
Belarus: Beer production increased 7.1% in 2007 ...Click here
Romania: Ursus Breweries expects market growth rate to slow down ...Click here
Denmark: Royal Unibrew to close Aarhus brewery in Q4 2008 ...Click here
Bulgaria: Brewers produced 6 million hectoliters of beer in 2007 ...Click here
Canada: Minister of Agriculture announces appointment of new President and Chief Executive Officer of the Canadian Wheat Board ...Click here
Australia: Barley stocks above year ago levels ...Click here




USA & Belgium: InBev declines comment on Anheuser-Busch merger talk ...More Info
Australia: Lion Nathan arranges AU$450 million loan to refinance existing facilities ...More Info
Belgium: InBev to outsource internal service staff posts ...More Info
UK: First Minister meets new S&N owners to seek assurances over jobs ...More Info
Australia: Cost of beer goes up in South Australia ...More Info
Russia: Baltika Breweries receives the ‘HR-Brand of the Year’ award ...More Info
Nigeria: Champion Breweries expresses confidence in federal government’s reforms programmes ...More Info
Canada: Canada's Liberal Party calls Wheat Board changes undemocratic ...More Info
Australia: ABB appoints Chief Financial Officer ...More Info
Go to our news database with more than 12102 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

USA: Anheuser-Busch reports increased sales and earnings for the fourth quarter and full year 2007

Anheuser-Busch Cos. Inc. reported that fourth quarter 2007 net sales increased 7.9 percent and diluted earnings per share increased 16 percent. For the full year 2007, net sales increased 6.2 percent and diluted earnings per share (excluding normalization items in both years) improved 10.3 percent, according to company’s press release, January 31.

"Anheuser-Busch achieved significant results in 2007," said August A. Busch IV, president and chief executive officer of the company. "We achieved strong earnings growth and broadened our beer portfolio to enhance our participation in the high-end segment. Our revenue per barrel performance was solid and we managed cost pressures effectively. International beer profits for the year for both our operations and those of our equity partners increased significantly and our packaging and entertainment segments contributed strong earnings growth. We also achieved significant increases in operating cash flow, return on capital and cash returned to shareholders."

U.S. beer shipments-to-wholesalers increased 3.4 percent for the fourth quarter, while sales-to-retailers increased 1.3 percent, on a selling day adjusted basis. Import brands contributed 230 basis points of growth to shipments and 180 basis points to wholesaler sales-to-retailers.

For the full year 2007, shipments-to-wholesalers increased 2 percent, and sales-to-retailers increased 1.3 percent with acquired and import ...More Info


Czech Republic: Beer output grows by 1% in 2007

Czech beer production will reach a record 20 million hectolitres last year, about one percent more on the year, and Czech beer exports will grow from 3.54 million to 3.7 million hectolitres, Jan Vesely, chairman of the Czech Beer and Malt Association, told CTK, January 29.

Final results for last year covering 45 industrial breweries operating on the Czech market will be available in February, said Vesely.

Markets in the neighbouring countries of Russia and Poland grow most dynamically, while the Slovak, Austrian and Hungarian markets are stagnant and the German market has been falling six years except for 2006.

Exports grow at a slower pace but still remain the main driving force of rising Czech production.

Last year, breweries exported nearly 3.7 million hectolitres, a growth of 160,000 hectolitres over 2006 when exports rose four times compared with 2005.

"I expect exports to rise by 150,000 hectolitres at most this year, with domestic sales remaining flat," said Vesely.

His words were confirmed by Mike Short, CEO of the largest Czech brewery Plzensky Prazdroj, at a news conference Tuesday.

Exports make up more than 18 percent of the output, most of them going to EU countries.

Now, however, it is more difficult to sell beer abroad also given ...More Info


Chile: CCU 2007 profits up 32% on higher revenue

Leading Chile brewer CCU said its 2007 net profit rose 32 percent from the same period last year as revenue climbed, according to Reuters, January 31.

CCU, also Argentina's second-largest beer producer, said profit rose to 79.199 billion pesos ($159 million) in 2007 from 59.964 billion pesos in 2006.

Total revenue rose 7.2 percent to 628.284 billion pesos from 586.186 billion pesos in 2006, as consolidated sales volume rose 6 percent. The largest percentage gains were in Argentina.

Operating profit rose 18.5 percent to 101.384 billion pesos, while operating losses fell.

The company agreed to buy Argentine brewer Inversora Cervecera (ICSA) in early October for $88 million.

($1 = 497.8 pesos)


Australia: Foster’s, Lion Nathan, Coopers to increase beer prices

Australia's three largest brewers are set to increase beer prices at the end of the week, according to Reuters, January 30. Foster's Group will lift prices by 1.9 percent to 3 percent, Lion Nathan by 1.7 percent and Coopers Brewery by 1.82 percent to 1.86 percent.

Coopers Brewery managing director, Tim Cooper, said the move to raise prices above the level of an automatic excise increase was prompted by an imminent 40 percent rise in malt prices from April and higher input costs. Foster's has the largest share of the beer market with 55 percent, while Lion Nathan has 42 percent and Coopers 3.5 percent.


Belarus: Beer production increased 7.1% in 2007

Belarusian brewers produced 3.55 mil hl of beer in 2007 which is 7.1% more than in 2006, according to “Belgospischeprom”, Interfax reported January 31.

The main producers were Krinitza brewery with 40.9%, Syabar with 15.7%, Olivaria with 12.7%, Lidskoe Pivo with 12.1%, Brestskoe Pivo – 8.4% and Rechitza Pivo – 8.1%.

According to specialists, beer consumption in Belarus in 2007 was of 4.5 mil hl, 15.6% higher than in 2006. The share of imported beer constituted 22.2% from total consumption volume (1 mil hl). The beer imports increased 61% in 2007 compared with 2006.


Romania: Ursus Breweries expects market growth rate to slow down

Stefan Maria Weber, the new chairman of Ursus Breweries, the producer of Ursus and Timisoreana beer brands, says he is impressed with the domestic beer market's growth rate over the past two years, but believes growth will slow down in 2008, Ziarul Financiar published February 29.

"The growth rate the Romanian beer market posted last year was very strong and unprecedented, exceeding even Russia's. We saw the biggest market increases of the past 18 months, with high temperatures and changing consumer habits proving to be the main growth drivers. This year, however, I don't expect market growth to top 10%," Weber told ZF in his first interview since his appointment as chairman of Ursus Breweries.

He became chairman on November 1, 2007, and replaced Dieter Schulze. Previously, Weber worked as sales, distribution and trade marketing manager for Europe with SABMiller.

"In the past, 80% of the hops required were harvested from Romania. After the drought, only 50% of hop production comes from Romania, which means we have to import more raw material at much higher prices than in the past, which will show in the price of final products," says Weber.

However, he estimates the market of alcohol-free beer has significant growth potential over ...More Info


Denmark: Royal Unibrew to close Aarhus brewery in Q4 2008

Denmark's Royal Unibrew AS said it has decided to close down production at its brewery in Aarhus in the fourth quarter 2008, as negotiations with affected employee groups have now resulted in an agreement, according to Thomson Financial, February 1.

The brewer said in January it was considering the close-down with an aim to strengthen future earnings.

As a result of the expected impairment losses, and due to deferral of closure costs to 2008, Royal Unibrew now sees a 2007 pre-tax profit at the lower end of 220-240 mln dkr; up from 200-220 mln dkr expected in January.

Unibrew reiterated its previous expectation that the closure will result in a positive EBIT impact of 20 mln dkr in 2010 onwards.

It added it will maintain an organisation in Aarhus with some 60 employees.


Bulgaria: Brewers produced 6 million hectoliters of beer in 2007

Almost 6 million hectoliters beer has been produced in Bulgaria in 2007, Newsbg reported January 30.

This makes 74 liters drunken beer per man, the Union of Brewers in Bulgaria (UBB) announced.

In 1993, the producing was little above 4 million hector liters.

Among the biggest producers are ‘Zagorka', ‘Kamenitsa' and ‘Carlsberg Bulgaria' companies.

Investments of UBB members in beer industry are 77.7 million BGN (39 million EUR) for 2007.

UBB has signed memorandums for cooperation with Federation of Consumers in Bulgaria.

They aim to prove high level of self-control, to habituate to moderate beer consumption and introducing of labels ‘Consume with pleasure and measure'.

UBB is approved as one of the first 11 brewery organizations from EU countries-members, presenting the brewery branch in front of European institutions.


Barley News

Canada: Minister of Agriculture announces appointment of new President and Chief Executive Officer of the Canadian Wheat Board

The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, announced the appointment of Ian White as President and Chief Executive Officer of the Canadian Wheat Board (CWB), Agriculture and Agri-Food Canada reported in a press release, January 30. Mr. White has been appointed for a three-year term starting March 31, 2008.

"I am pleased that Mr. White has accepted the appointment of President and CEO of the CWB," said Minister Ritz. "With the strong support both this Government and the CWB have given Mr. White, I trust both will give him the freedom and the tools he will require to work in the interests of Western Canadian producers."

Mr. White’s appointment is fully supported by both the Government of Canada and the Canadian Wheat Board.

"The CWB, in conjunction with the government, engaged in a rigorous process and extensive search to find the best candidate for the position, and we are confident that Mr. White, with his comprehensive background and experience, will provide strong leadership to the corporation," said Ken Ritter, Chair of the Search Committee and the CWB Board of Directors.

Mr. White will provide strong leadership as the CWB faces a number of challenging issues, ...More Info


Australia: Barley stocks above year ago levels

The Australian Bureau of Statistics reports that as of December 31, 2007, domestic barley stocks totalled 4.758 million tons, compared to 3.106 million on November 30, 2007.

The bulk of that was feed barley at 3.121 million tons, while malting barley accounted for 1.637 million tons.

Scientific Digest

Microbes in the tailoring of barley malt properties

Arja Laitila
Academic dissertation in Microbiology presented, with permission of the Faculty of Agriculture and Forestry of the University of Helsinki, for public criticism in the Auditorium of Helsinki University Museum Arppeanum, Snellmaninkatu 3, on the 31st of August 2007, at 12 o’clock noon.

Abstract
Malted barley (malt) is traditionally used in the production of beer and distilled spirits. In addition, it can be processed into ingredients for different areas of the food industry. Malting, the controlled germination of cereal grains, is a complex biological process involving a wide range of biochemical and physiological reactions. The diverse microbial communities naturally colonizing barley grains play a crucial role in this process. Therefore, the malting process can be considered as an ecosystem involving two metabolically active groups: the germinating grains and the diverse microbiota. It is evident that the multitude of microbes greatly influences the malting process as well as the quality of the final product. The main goal of this thesis was to study the relationships between microbes and the germinating grain during the malting process. Furthemore, this study provides a basis for tailoring of malt properties with natural, malt-derived microbes....

Keywords barley, malting, malt quality, bacteria, yeasts, filamentous fungi, microbiota, management, biocontrol
... Load full article, 112 pages, 2465 Kb, PDF file

Malting barley prices.
French barley prices. Nominal prices
EURO = USD 1.4854 February 01, 2008 
 Crop year   2007   2008 
 Parity   FOB Creil   FOB Creil 
 Position   July 2007   July 2008 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  314.00  466.50  302.00  448.50 
2RS  Prestige  313.00  465.00  301.00  447.50 
2RS  Cellar  312.00  463.50  300.00  446.00 
2RS  Sebastien  311.00  462.00  299.00  444.50 
2RS  Astoria  311.00  462.00  299.00  444.50 
2RS  Cork   311.00  462.00  299.00  444.50 
6RW  Esterel   268.00  398.50  258.00  383.50 

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

Theoretical malt prices

EURO = USD 1.4854 February 01, 2008
Crop year  2007 
Parity  FOB Antwerp 
Position  Feb 2008 - Sept 2008 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  574.50  853.50  598.50  888.50  590.50  876.50  604.50  897.50 
2RS  Prestige  573.50  851.50  597.00  887.00  589.00  875.00  603.00  896.00 
2RS  Cellar  572.50  850.00  596.00  885.00  588.00  873.00  602.00  894.00 
2RS  Sebastien  571.00  848.00  594.50  883.50  586.50  871.50  600.50  892.50 
2RS  Astoria  571.00  848.00  594.50  883.50  586.50  871.50  600.50  892.50 
2RS  Cork   571.00  848.00  594.50  883.50  586.50  871.50  600.50  892.50 
2RS   Average price  572.50  850.00  596.00  885.00  588.00  873.00  602.00  894.00 
6RW  Esterel   517.00  769.50  542.00  804.50  533.50  792.50  548.00  813.50 
Asia Malt 70/30  556.00  826.00  579.50  861.00  571.50  849.00  585.50  870.00 
**  Asia Malt 50/50  545.00  809.50  569.00  845.00  560.50  833.00  575.00  854.00 


EURO = USD 1.4854 February 01, 2008 
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  549.00  815.50  572.50  850.50  564.50  838.50  578.50  859.50 
2RS  Prestige  548.00  813.50  571.50  849.00  563.50  836.50  577.50  857.50 
2RS  Cellar  546.50  812.00  570.50  847.00  562.00  835.00  576.50  856.00 
2RS  Sebastien  545.50  810.00  569.00  845.00  561.00  833.00  575.00  854.00 
2RS  Astoria  545.50  810.00  569.00  845.00  561.00  833.00  575.00  854.00 
2RS  Cork   545.50  810.00  569.00  845.00  561.00  833.00  575.00  854.00 
2RS   Average price  546.50  812.00  570.50  847.00  562.00  835.00  576.50  856.00 
6RW  Esterel   494.00  735.00  518.50  770.50  510.50  758.00  524.50  779.50 
Asia Malt 70/30  531.00  789.00  554.50  824.00  546.50  812.00  561.00  833.00 
**  Asia Malt 50/50  520.50  773.50  544.50  808.50  536.50  796.50  550.50  817.50 

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

Prices Evolution

Prices evolution
Source: ABARE, December 2007

Table of the week

Europe Barley Crop Estimate 2007

Country Year BARLEY  thereof SPRING BARLEY 
    Area
1000 ha
Yield
100kg/ha
Production
1000 t
Area
1000 ha
Yield
100kg/ha
Production
1000 t
Austria  2006  206  44.3  913  142  41.3  586 
2007  193  41.9  809  119  32.7  389 
Belgium/Lux.  2006  55  77.4  426  59.0  50 
2007  58  65.0  377  60.0  48 
Denmark  2006  680  48.1  3 271  521  45.6  2 376 
2007  628  49.1  3 085  459  48.8  2 240 
Finland  2006  564  34.0  1 918  564 34.0 1 918
2007  550  36.0  1 980  550 36.0 1 980
France  2006  1 662  62.7  10 421  493  57.1  2 815 
2007  1 705  55.5  9 463  519  51.9  2 694 
Germany  2006  2 025  59.1  11 968  542  46.4  2 515 
2007  1 934  54.2  10 478  496  42.7  2 118 
Greece  2006  170  16.0  272       
2007  200  15.0  300       
Ireland  2006  157  69.0  1 083  144  70.0  1 008 
2007  158  62.0  1 982  141  60.0  846 
Italy  2006  325  37.5  1 219       
2007  335  34.3  1 149       
Netherlands  2006  44  61.2  269  41  60.7  249 
2007  45  57.7  260  41  56.6  232 
Portugal  2006  41  23.0  94       
2007  40  19.0  76       
Spain  2006  3 227  25.8  8 318  2 501  25.9  6 465 
2007  3 220  36.0  11 592  2 537  37.3  9 463 
Sweden  2006  307  36.2  1 111  301  36.0  1 084 
2007  320  44.9  1 437  312  44.6  1 392 
U.K.  2006  878  59.4  5 215  494  53.2  2 628 
2007  885  58.2  5 151  507  55.3  2 804 
TOTAL EU-15  2006  10 341  45.0  46 497  5 792  37.7  21 694 
2007  10 271  45.9  47 138  5 689  42.5  24 205 
Cyprus  2006  50  22.0  110       
2007  50  22.0  80       
Czech Rep.  2006  529  37.5  1 984  426  37.0  1 576 
2007  499  38.5  1 921  369  35.3  1 303 
Estonia  2006  142  21.4  304  142  21.4  304 
2007  141  26.4  372  139  26.5  368 
Hungary  2006  300  38.0  1 140  122  36.0  439 
2007  329  32.4  1 053  142  25.8  366 
Latvia  2006  152  16.1  245  148  16.0  237 
2007  145  23.2  336  140  23.0  322 
Lithuania  2006  383  19.4  743  377  19.3  728 
2007  375  27.2  1 020  365  27.0  986 
Malta  2006  26.0       
2007  26.0       
Poland  2006  1 221  26.8  3 272  1 066  25.5  2 718 
2007  1 235  32.9  4 063  1 061  32.1  3 406 
Slovakia  2006  186  34.8  644  166  35.2  584 
2007  204  33.2  677  185  33.0  611 
Slovenia  2006  17  36.0  61       
2007  20  36.8  74       
TOTAL EU-10  2006  2 980  28.5  8 505  2 447  26.9  6 586 
2007  2 989  32.1  9 599  2 401  30.7  7 361 
TOTAL EU-25  2006  13 321  41.3  55 003  8 199  34.5  28 280 
2007  13 260  42.8  56 738  8 090  39.0  31 566 
Romania  2006  330  21.9  723  200  19.3  386 
2007  300  8.6  258  160  6.5  104 
Bulgaria  2006  210  24.5  515  25  20.0  50 
2007  190  17.8  338  25  10.0  25 
Serbia  2006  95  29.1  276  50  26.5  133 
2007  105  28.0  294  35  20.0  70 
Croatia  2006  59  35.5  209       
2007  50  35.0  210       
Bosnia  2006  20  25.0  50       
2007  15  24.5  37       
Macedonia  2006  35  25.0  88       
2007  40  25.0  90       
Albania  2006  10  30.0  30       
2007  10  28.0  28       
TOTAL Non - EU  2006  219  29.8  653  50  26.5  133 
2007  229  28.8  659  35  20.0  70 
TOTAL EUROPE 31  2006  14 080  40.4  56 893  8 474  34.6  28 848 
2007  13 979  41.5  57 993  8 310  38.2  31 765 
Source: COCERAL, Brussels, December, 2007
Graph Of The Week



These Days in Business History
January 31
1956 The twist off bottle cap is invented
1973 Ragnar Frisch Norwegian economist (Nobel 1969), dies at 77
1990 McDonald’s opens its first restaurant in Russia.

February 1
1788 1st US steamboat patent issued, by Georgia to Briggs & Longstreet
1884 1st volume of the Oxford English Dictionary, A-Ant, published
1898 1st auto insurance policy in US issued, by Travelers Insurance Co
1968 World trade conference Unctad 2 opens in New Delhi

February 2
1914 The Hong Kong Stock Exchange (formerly the Association of Stock Brokers in Hong Kong) is established.
1947 Edwin H. Land, founder of Polaroid Corp., demonstrates the instant camera to 650 scientists assembled at the annual meeting of the Optical Society of America.
1995 Barings Bank, one of the oldest and most distinguished investment banks in the world, declares bankruptcy after rogue trader Nick Leeson loses more than $1.4 billion on unauthorized (and apparently unsupervised) trades in Japanese stock futures.

February 3
1690 1st paper money in America issued (colony of Mass)
1815 World's 1st commercial cheese factory established, in Switzerland
1848 For $15 million, the United States purchases the entire territories of Arizona, California, New Mexico, and Texas, along with parts of Colorado, Nevada, and Utah, from Mexico under the Treaty of Guadalupe Hidalgo.
Agenda