Tsingtao Brewery Co Ltd, China's best-known beer brand, expects more than 11 percent growth in sales and profits in 2008 despite rising raw materials costs, its president said, according to Reuters, March 7.

Higher costs for barley and hops would bite into profits from this month, even though the company had seen a 40 percent jump in profit and 30 percent sales growth in January from the year-ago period, said Jin Zhiguo, the company's president.

The brewer, established a century ago in the port city of Qingdao, sold 5 million tonnes of beer last year, ranking second in the country with a 13 percent market share behind China Resources Enterprises Ltd, which sells the premium Snow brand among others.

Tsingtao would raise prices on its high-end products while expanding sales of low-end products to make up for the raw material costs, said Jin.

High raw material costs would speed up industry restructuring and force many of China's 400 lesser-known brands to close down.

"High costs will force many (smaller) breweries to close, which will provide a good chance for us to expand our market share," Jin told reporters on the sidelines of the annual meeting of the National People's Congress.

The company is looking for barley ...More Info

Heineken, Diageo and Namibia Breweries have reached agreement to form a new joint venture for their combined beer, cider and RTD businesses in South Africa, according to Heineken’s press release, March 7. The new joint venture builds on the success of brandhouse Beverages (Pty) Limited, the parties’ current cost-sharing joint venture in South Africa, which will continue to market and distribute the parties’ products in South Africa.

Heineken and Diageo will each own 42.25% of the new joint venture and Namibia Breweries will own 15.5%. Each party will share in the profits in proportion to their shareholding. The transaction is conditional on the approval of the Competition Commission of South Africa and is expected to complete on 31 March 2008.

In addition, Heineken and Diageo will form a second joint venture in South Africa. The new entity will construct and operate a brewery in Gauteng province, South Africa, and will be owned 75% by Heineken with Diageo holding a 25% stake.

The brewery will have an initial capacity of 3 million hectolitres, with the built-in flexibility to expand and will produce some of the joint venture products, amongst others Heineken and Amstel brands. Construction is expected to commence within three months ...More Info

Bitburger, Germany's third largest brewer, wants to create a chain of bars carrying its brand name, Handelsblatt newspaper reported, citing the company's chairman Peter Rikowski, according to Thomson Financial, March 5.

Bitburger currently supplies around 75,000 bars and restaurants in Germany with its Bitburger, Konig Pilsener, Licher, Kostritzer and Wernesgruener beers.

Bitburger wants to adopt a model of bar and restaurant ownership that is common in the UK.

'We want to give our restaurateurs the advantages that we have as a large group,' Ritowski said.

Pyramid Breweries Inc. reported a net loss for the fourth quarter of $1.8 million or $0.20 per share, compared to a net loss of $1.2 million or $0.14 per share for the year-ago quarter, according to RTTNews, March 5.

Gross sales, including excise duty, fell to $12.18 million in the fourth quarter from $12.48 million a year ago. Net sales for the quarter declined to $11.51 million from $11.66 million last year.

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Malt markets have changed drastically since two years, therefore it is impossible to estimate the amount of business already done for crop 2008, analysts have recently reported.

Almost all large international and even some national brewing companies have switched a large percentage, in some cases all of their needs, to LTA’s, which fix the quantity, delivery period and malting margin of contracts, but leave the barley price, in some cases also the cost of energy and of transport, open for later fixation. In this way a few Million tons of malt have been covered for 2009, similar quantities also for 2010 and 2011, not only from European, but also from Canadian and Australian industries.

Malting barley market continue to be calm, both for old and new crop, La Depeche published March 6. Brewers are not very active, assured by the favourable outlook of 2008 crop.

The announcement of barley subsidies hike by Saudi Arabia, made feed barley prices to increase in ports. A small demand is registered on the local market.

For 2007-08, exports are forecast to rise sharply, as a result of higher exports of feed barley, Agriculture and Agri-Food Canada reported March 6. Carryout stocks are forecast to decrease to the lowest in recent history. Off-Board feed barley prices are expected to reach the highest level in at least 25 years.

For 2008-09, although area seeded to barley is expected to be similar to 2007-08, production is forecast to rise by 10% due to higher yields. Total supply is forecast to rise by 7%. Domestic feed use is expected to increase due to lower prices. Total exports are forecast to decrease due to lower exports of feed barley.

Carry-out stocks are expected to rise slightly but remain historically low. The off-Board price of feed barley is forecast to remain strong, but slightly lower than for 2007- 08. For Feed Barley Pool A, the CWB February PRO is $235/t vs. $269/t for 2007-08 and $360/t for Special Select two-row designated barley vs. $290/t for 2007-08.

Firm world markets have a strong effect on domestic price levels in Eastern Europe, according to analysts, February 29. Russia responded with prohibitive export taxes, barley exports fell still after November 2007 and remained at a total of 1.026 Mill. tons for the crop year.

The Ukraine prohibited barley exports from July onwards and has only now granted a export quota of 400,000 tons. An increase by an additional 500,000 tons is rumoured, but the trade doubts that such quantity is still available. But these countries have also recognized the need and chance to grow more grains and oilseeds for their own markets and the world.

Total grain acreage will increase in 2008 in Russia from 45 to almost 47 Mill. HA, in the Ukraine only from 15.5 to 15,6 Mil. HA and in Kazakhstan from 14.6 to 15,0 Mill. HA. The increased plantings will concern mostly wheat, it must even be feared that the acreage of barley will decrease.

A Ukrainian analyst forecasts barley plantings of 4,586 Mill. HA vs. 5,055 last year, but better yields should provide for a crop of 9.45 Mill. tons vs. 6.15 in 2007. Like all other forecasts this one is based on a ...More Info

Barley futures fell on profit-taking after touching new highs for the last two sessions, The Economic Times reported March 7.

Arrivals are about to start and may weigh on the sentiment pulling futures down. The losses, however, will be trimmed on expected strong demand for the commodity from domestic beermakers.

Saudi Arabia, the world's biggest importer of barley, raised subsidies on the grain 71 percent to wean farmers off wheat flour to which they turned after lower-than-average winter rains hurt pastures, Reuters reported March 5.

The government raised the subsidy to 1,200 riyals ($320) per tonne from 700 riyals per tonne.

Saudi Arabia, a largely desert kingdom, imports around 6 million tonnes per year of barley, out of global trade of 15 million tonnes, according to the International Grains Council.

D. Evan Evans and Anne Surrel, Tasmanian Institute of Agricultural Research, University of Tasmania, Hobart, TAS, Australia; Megan Sheehy and Douglas C. Stewart, Joe White Maltings Ltd., Adelaide, SA, Australia; and Louise H. Robinson, Lion Nathan Limited, Lidcombe, NSW, Australia


Abstract
J. Am. Soc. Brew. Chem. 66(1):1-10, 2008 Rudin, NIBEM, lacing index, cylinder pour, and shake foam quality tests were comprehensively compared to evaluate their utility and responsiveness to beer components that are thought to influence foam quality. Each of the tests responded differently to beer characteristics that influence beer foam quality. The Rudin and shake tests responded positively to the level and content of foam-promoting proteins (i.e., protein Z4) and also to the level of isomerized hop a-acids in beer. However, the shake test did not differentiate between isomerized and hydrogenated hop a-acids, whereas the Rudin test did. The lacing index responded positively to isomerized hop a-acids, hydrogenated in particular, but possibly negatively to alcohol. Hydrogenation of hop a-acids and protein Z4 increased foam stability as measured by the cylinder pour test, whereas alcohol, higher pH, and CO2 level tended to reduce foam stability. A positive association with the level of isomerized hop acids was not observed; however, further investigation is required to clarify this. Finally, the NIBEM test results were influenced positively by the level of isomerized hop acids and protein Z4, while they were negatively correlated with viscosity and final gravity. Hop a-acid hydrogenation substantially improved NIBEM foam stability compared with isomerized hop a-acids. The NIBEM test was correlated positively with the Rudin, cylinder pour, lacing index, and shake (foam quality generated) tests. These comparisons and observations suggest how these foam quality evaluation tests may be best used for quality control/assurance and beverage development.
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