InBev (Euronext: INB), the world’s leading brewer, announced its results for the full year 2007 (FY07) and fourth quarter 2007 (4Q07), in a press release, February 28.

• Beer volume growth: beer volumes rose 4.7% for the full year, year-on-year (yoy), with volume growth in most Zones. In the fourth quarter, beer volumes grew 4.3% organically.

• Revenue up: revenue increased by 7.2% for the year, as a result of higher volumes and an increase in revenue per Hl of 1.9%, or +3.6% eliminating the impact of the change in geographic mix. 4Q07 revenue was up 7.8%, as the result of 2.1% higher revenue per Hl and increased volumes. Excluding the impact of the change in geographic mix, revenue per Hl would have increased +3.8%.

• Control of cost and expenses: despite some input cost increases, consolidated cost of sales (CoS) per Hl for the full year was only 2.0% above 2006, below the average inflation in our geographies. This result was supported by a limited increase of 0.4% in CoS per Hl for the 4Q07, yoy. A decrease of 2.1% in group operating expenses for the year, and 7.7% for the quarter, mainly due to lower overhead costs, is evidence that the group benefits ...More Info

Tsingtao Brewery Company Limited, one of the biggest Chinese beer makers, is to raise prices in East China, SinoCast reported February 29.

Tsingtao Brewery will raise the prices of some pasteurized beer and pure draft beer products in East China in several days as well as cancel discounts for some medium and low-end beer products there, said people in the company.

Tsingtao Brewery had conducted a round of price lift in the country in January 2008, said another report, but not including the East China.

Just days ago, Beijing Yanjing Brewery Co., Ltd., another Chinese beer magnates, disclosed a similar plan.

The recent draught in Australia largely reduced the production of Australian malting barley, which is the main raw material for beer brewage in China. And it was imported at USD 500 per ton in February 2008, compared with USD 170 per ton in early days.

Besides, the price of hop is hiking and the same is true of the costs for transportation and energy use and packaging.

Quilmes Industrial (Quinsa) S.A. ("Quinsa" or the "Company") announced its results for the six months and full year ended December 31, 2007, PRNewswire reported February 28.

Beer volume sales increased to 9,822,000 hectoliters from 9,706,000 hectoliters a year earlier, in spite of the divestiture of three brands in Argentina, in accordance with anti-trust requirements. The Company performed particularly well in Argentina, Bolivia and Uruguay. Unlike the first half of the year, both Chile and Paraguay showed increases in their sales volumes.

Consolidated net sales increased 18.9%, based on the good volume performances throughout the region and higher sales prices in all the countries where Quinsa operates.

Gross profit increased to US$ 459.9 million from US$ 389.3 million a year earlier. This was largely the result of higher volume sales and prices in all of the Company's operations, partially offset by higher costs for labor, commodities and energy.

Selling and marketing expenses increased 17.6% to US$ 149.3 million, due to the increase in volumes and also higher freight costs, in turn principally related to increases in labor costs. Advertising expenses decreased 3.0%, and represented 5.4% of consolidated sales. Overall, selling and marketing expenses declined as a percentage of sales, from 19.7% to 19.4%.

Administrative and general ...More Info

Beer production in Ukraine will increase 14% in 2008 to 36 million hectolitres assuming that excise rates remain unchanged, said Galina Korenkova, the general director of Ukrpivo, an association of Ukrainian brewers, according to Interfax, February 28. "If the excise tax remains at the current level, beer production could total 36 mil hl and, if not, 33 mil hl or perhaps less," she said at a press conference in Kyiv on Thursday. A hike in the excise rate would force smaller brewers out of the market, she said. Korenkova said it was difficult to predict how the beer industry would be affected by Ukraine's impending entry into the World Trade Organization (WTO), which will lower import tariffs on beer. She noted only that the Ukrainian beer market is highly competitive. Earlier the State Tax Administration proposed raising the excise tax on beer, which was set at 0.31 UAH per litre for 2008.

Beer production in 2007 increased 18% to 31.6 mil hl. Four companies account for over 96% of Ukrainian beer production: SAN InBev Ukraine, Obolon, BBH and Sarmat. The volume ...More Info

Asia Pacific Breweries (APB), manufacturers of the renowned Tiger beer brand, is likely to acquire a brewery in Rajasthan soon, as part of expanding its foothold into north India, according to Financial Express, February 28. The company, which wants to establish its presence in Rajasthan, Haryana and Punjab, is learnt to have started talks with a number of smaller brewing Companies. The acquisition is expected to be in the range of Rs 80-100 crore.

APB operates through two joint ventures in India. APB (Aurangabad) Limited, which brews Cannon 10000 and Arlem, is a 76:24 joint venture with Vijay Chougle, while APB-Pearl Limited is a 67:33 JV with CK Jaipuria. The breweries in Aurangabad and Hyderabad have a capacity of 5 and 6 million cases per annum respectively. In an interaction with FE , Vivek Chhabra, regional director, south Asia & director, group business development, APB Limited, said, “We are keen to launch our corporate brands like Tiger, Baron’s strong brew, Anchor and ABC extra stout, across the country in a couple of months. We would like to have a strong presence in north, especially, Rajasthan, Haryana and Punjab.” “Though no brewery licences are allowed in Rajasthan as of now, APB ...More Info

Representatives of an important European beer company have visited the Omsk region to discuss their intention to change their malting barley supplier with another one from this region, according to the media, February 27.

Their current supplier is from Central Russia, and the barley is shipped to the companies from region by railway. This process is very costly and has an impact on final product’s price.

Omsk region is already cultivating 2 varieties of malting barley on more than 140 thousand hectares, but the brewers are not satisfied with these varieties. They want to cultivate foreign varieties of malting barley, because all their production process is based on them. The region needs several years to be able to reach the highest quality standards.

Nevertheless, specialists consider that this project has a good future because it will create jobs and an important market for the region. According to preliminary data, in several years the agrarians will be able to supply some 150 thousand tonnes of malting barley per year.

According to the draft resolution of the Cabinet of the Ministers, published at the official internet site of the Ministry of Economics of Ukraine, the quota for barley export may be increased by 0.5 mil tonnes, Agrimarket reported February 27.

According to this document, in particular, they propose to increase the export quota for barley from 400.000 tonnes to 900.000 tonnes.

The draft resolution foresees prolongation of grain quotas efficiency from March 31 till June 30, 2008.

In addition, the draft resolution proposes to introduce some changes in the personal membership of the commission on quotas distribution as well as reduction of terms of grain export licenses granting.

There has been a small increase in malting barley market for 2008 crop this week, with malsters closing some contracts for the new crop, according to La Depeche, February 28.

On the contrary, the 2007 crop market stands still with prices continuously decreasing.

Feed barley market remains inert, with irregular price evolution that depends on the origin of barley. The market is suffering from the present feed grain crisis.

Malting barley markets are "mostly quiet," the CWB said, as end users are mostly covered, although current-year supplies are still tight and forecasts call for fewer acres to be seeded to barley this spring, Grainews reported February 28. PRO values thus remained flat, with Standard Select Canada Western two-row at $290 per tonne and SS CW six-row at $264.

Offshore demand for feed barley has weakened, the board said, while supplies of available substitute feed grains and Australia's exportable barley are both larger than expected. No. 1 Canada Western (Pool B) feed barley values in the February PRO are down $7, at $252 per tonne.

Japan's Kirin Brewery Co. has started joint purchase of hops with an Australian beer company in a move to procure a stable supply of the key ingredient of beer and beer-like alcoholic drinks at low cost, Kirin officials said, according to Jiji Press, February 26.

The full-fledged joint hop procurement venture by Kirin Brewery and Sydney-based Lion Nathan Ltd., in which Kirin Brewery's parent, Kirin Holdings Co, has a 46 pct equity stake, followed a successful test project last autumn, the officials said.

It has become more difficult to procure hops and malt amid growing demand for biomass-derived eco-friendly fuels and resulting rises in raw material prices, Kirin Brewery President Senji Miyake said.

Under the joint procurement initiative, Kirin Brewery is buying hops from Europe and Lion Nathan from New Zealand. The New Zealand hops are now used in Kirin's Sparkling Hop quasi-beer.

The Japanese company is also considering joint hop procurement with its group firms in China, the officials said.

As for malt procurement, Kirin Brewery has been cooperating with three companies, including San Miguel Corp. of the Philippines, about 20 pct of which is owned by Kirin Holdings, they added.

M. J. Edney, J. K. Eglinton, H. M. Collins3, A. R. Barr, W. G. Legge, and B. G. Rossnagel


Abstract
J. Inst. Brew. 113(2), 228–238, 2007 Malt wort fermentability is dependent on an adequate supply of the essential nutrients required by yeast. The barley and malt factors affecting this supply of nutrients are not well understood. This study used two doubled haploid populations (Arapiles × Franklin, TR251 × HB345), the latter with a hulless barley parent, to investigate effects of barley and malt quality on fermentability. Populations were grown and malted at different locations resulting in a broad range in malt quality with significant differences in extract, modification and enzyme levels. Fermentability, as indicated by apparent attenuation limit and ethanol levels, also showed significant differences among samples. Modification was the most important factor for good fermentability. There appeared to be several different mechanisms by which modification affected fermentability. High viscosities, slow starch release during mashing, increased glucose supply from better b-glucan breakdown and increased free amino nitrogen levels all affected fermentability. Effects of starchdegrading enzymes on fermentability became more significant in better modified malts with a-amylase showing stronger effects than diastatic power. The poorer fermentability of hulless barley malt was predominately due to low levels of a-amylase, although, free amino nitrogen also appeared to be an important factor. Key words: Barley, hulless, b-glucan, ethanol, fermentable sugars, free amino nitrogen.
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