Base Currency: Euro, EUR on 11-June-2004 1 EUR = 1.2115 USD 1 EUR = 0.6574 GBP 1 EUR = 1.6486 CAD 1 EUR = 1.7372 AUD 1 EUR = 132.35 JPY 1 EUR = 3.7871 BRL 1 EUR = 35.1698 RUB	Base Currency: US Dollar on 11-June-2004 1 USD = 0.8257 EUR 1 USD = 0.5427 GBP 1 USD = 1.3608 CAD 1 USD = 1.4339 AUD 1 USD = 109.27 JPY 1 USD = 3.126 BRL 1 USD = 29.03 RUB
EUR/USD Chart

Hungary: Netherlands’ brewing force, Heineken N/V continue to insist that its plans to buy Brau Union Hungaria will go ahead on schedule, in spite of suggestions that legal arguments may delay the transaction. A spokesman for the Dutch brewer announced on June 9 that the purchase would not be delayed. Heineken currently holds an 85% share in Brau Union Hungaria. Media suggested on June 9 Heineken’s acquisition has been held up. Several shareholders of Brau Union Hungaria, including Hungarian investment fund Concorde Alapkezelo, have filed a complaint against Heineken's takeover bid with the company court. It is still unknown when the court will consider the case, the spokesman for Heineken said. Media reported on June 9 that Brau Union Hungaria has had all decisions made at its AGM suspended, according to local press reports. Napi Gazdasag claims that a company court in Hungary has ordered that all the decisions taken at April’s meeting be suspended, pending a legal complaint from fund manager Concorde Alapkezelo. Heineken has spent the last 12 months trying to buy the brewer, but legal obstacles brought by Concorde and other small shareholders have held up the process. Brau Union Hungaria has had all decisions made at its AGM suspended, according to local press reports. Napi Gazdasag claims that a company court in Hungary has ordered that all the decisions taken at April’s meeting be suspended, pending a legal complaint from fund manager Concorde Alapkezelo...more info

USA: Light-beer sales will surpass regular beer in the U.S. by next year as low-carbohydrate diets such as Atkins and South Beach become more popular, according to market- research firm Mintel International Group Ltd. Almost 30 % of Americans now consume light or low- carbohydrate beer, such as Anheuser-Busch Cos.'s Bud Light and Michelob Ultra, compared to the 27 % who drink regular beers like Budweiser, Mintel said in a statement e-mailed from its Chicago office, Bloomberg posted on June 10. Competition for low-carbohydrate beer drinkers led to squabbles last month between SABMiller Plc and larger rival Anheuser-Busch. SABMiller, which has South African roots, promotes its Miller Lite as lower in carbohydrates than Bud Light and has poked fun at Budweiser's ``King of Beers'' slogan in commercials. St. Louis-based Anheuser-Busch responded with ads describing Miller as foreign-owned. “The low-carb phenomenon is important and Anheuser-Busch has had a lot of success on that with Michelob Ultra, but the low- carb impact on overall shipments may be starting to peak,'' Mark Swartzberg, a beverage analyst at Legg Mason Wood Walker Inc. in New York, said yesterday in a television interview. Higher sales of Michelob Ultra helped boost first-quarter profit at Anheuser-Busch, the world's biggest brewer, by 13 percent. SABMiller, the world's No. 2, said last month profit more than doubled as a result of Miller Lite sales in the six months through March 31. Beers that are low in calories or carbohydrates last year accounted for 45 % of the U.S. beer market, valued by Mintel at $40 billion, excluding bar sales and imported brews...more info

Brazil: AmBev’s market share in Brazil saw a slight increase in May 2004 up to 66% versus 65.4% in April 2004, according to data revealed by the market research organisation, AC Nielsen. Brahma, Skol and Antarctica, all AmBev’s beer brands, increased their share of the market in May 2004. Meanwhile Schincariol, AmBev’s bitter rival in its home market, saw its market share drop by 0.1% last month to 11.6% from 11.7% in April. Molson, which sells Kaiser and Bavaria in the country, has registered a drop to 7.7% last month. April’s figures for Molson were not available. At the beginning of 2003, Kaiser held 11% of Brazilian beer market.

Germany: The North German company, Holsten Group, which was purchased in March by the international brewery Carlsberg A/S, announced on June 8 that it would concentrate in future on the beer trade in North and East Germany. That’s where the breweries of the group are located, in Hamburg, Lübz, Brunswick, Dresden and Görlitz. That’s where the brands like Holsten, Astra, Lübzer and Feldschlößchen have high market shares, which need to be further expanded. The Holsten subsidiaries Hansa-Brunnen, König-Brauerei and Licher Privatbrauerei, which are active beyond the beer trade or the Northeast region, are being, respectively will be sold. They made up a considerable part of the former Holsten Group, accounting for around 42% of sales in 2003, with equivalent high expenses for cooperation and administration. These administrative functions and positions will be eliminated by the sales. In future, this will tie up fewer resources in these sectors, which will thus become available to strengthen the Holsten brands and to develop the Carlsberg brand within Germany. The foreign business of Holsten will be restructured and expanded. The Hamburg-based company will use the international marketing organisation of Carlsberg, the fifth largest brewery corporation worldwide, which sells beer in over 140 countries. Following on from Carlsberg and Tuborg, Holsten will be the third brand to be marketed internationally by Carlsberg A/S. The adjustment of the Holsten structure with regard to its domestic and foreign business will result in the downsizing of its staffing requirement primarily in Hamburg. This will affect 134 members of staff from amongst the 765 permanent employees on April 1st. Just 12 jobs will be lost (from 757) in the other four breweries of the Group in Germany. It is planned to transfer those affected to an employment company, who will provide them with further qualifications and will assist them in finding new jobs...more info

Japan: Combined shipments of beer and "happoshu", low-malt beer, by Japan's five top brewers dropped 4.3% in May 2004 compared to May 2003 for the fifth straight monthly fall, according to the reports released by the brewers on June 10. Beer and happoshu shipments by Kirin Brewery Co, Asahi Breweries Ltd, Sapporo Breweries Ltd operating under Sapporo Holdings Ltd, Suntory Ltd and Orion Breweries Ltd totaled 37.17 million cases, Kyodo News revealed.

Malt News

EU: The sore point of the malt market is the price level, according to a reports posted by branch analysts. Domestic sales below EUR 250, average price for 2005, delivered breweries, leave a great counter-margin, which will certainly endanger the existence of the part of the industry. Prices of malting barley cannot drop far enough to make the malt calculation profitable. New malting capacities coming on stream in both the EU and the CIS and the pressure exerted by the large brewing groups have led to the present depression. It is not the first time at all that the malting industry panics. Some time in the future the EU will have a very concentrated malting industry, as it is the case in all overseas countries, analysts forecast. Then there will be a better balance of market power between grain trade (cooperatives), maltsters and brewers, than is the case now.

Barley News

Canada: For 2004-05 barley production in Canada is forecast to increase marginally from 2003-04 due to higher yields, according to a report released by Agriculture and Agri-Food Canada (AAFC) on June 04, 2004. Barley supplies are expected to rise by 7% due mainly to higher carry-in stocks. Exports of malting barley are expected to increase as import demand in China recovers to a more normal level. Feed barley exports are forecast to fall due to increased competition from the EU and the Black Sea regions. Feed use is expected to rise due to higher barley supplies in western Canada and increased shipments to eastern Canada. Carry-out stocks are forecast to increase. Off-Board feed barley prices are expected to increase slightly due to higher US corn prices. The CWB May 2004-05 PRO for No.1 CW Feed Barley is $136/t versus $164/t for 2003-04. The PRO for Special Select Two Row designated barley is $190/t versus $200/t for 2003-04, largely due to increased supplies in Europe.

World market prices for feed barley of crop 2003 dropped to (uncompetitive) US $ 142- FOB Rouen and 120- FOB Black Sea. New crop is offered at 131- FOB EU ports, but at only around US $ 100- FOB Black Sea.

Theoretical malt prices.

* - 70/30 = 70% Average two Rows Spring and 30% Six Rows Winter
** - 50/50 = 50% Average two Rows Spring and 50% Six Rows Winter

Theoretical malt prices for crop 2004 are available online www.e-malt.com/MarketPrices

Malting barley prices. French barley prices.

Graph of the week
Agenda

June 2004:
BrewNZ 2004;
ALIMENTARIA MEXICO International Food and Beverages Exhibition;
Hotelympia;
BEVEX 2004 - Korea Int'l Beverage & Brewery Processing Technology Expo;
10th international symposium on pre-harvest sprouting in cereals;
BevTek / BrewTek;
IGC GRAINS CONFERENCE 2004;
26th Annual National Homebrewers Conference;
Scottish Traditional Beer Festival;
Coceral Congress 2004;
American Homebrewers Association 26th Annual National Homebrewers Conference;
Food Taipei;
The 9th International Barley Genetics Symposium;
Little Oktoberfest;

July 2004:
VI Moscow Beer Festival;
Lucky Baldwin's IPA Festival;
BevTek / BrewTek China;
Vermont Brewers Festival;
World Brewing Congress 2004;
Hop, malt and beer of Russia Exhibition;

August 2004:
Great British Beer Festival;
Worcester Beer and Cider Festival;
BeerTek China Beer and Brewing Technology Exhibition;
Peterborough Beer Festival 2004;
FOODWORLD Food and Beverage Exhibition;
TecnoBebida Latin America International Exhibition of Technologies for the Beverage Industry;

More events are available on site e-malt.com