Belgium-based brewer InBev NV and Anheuser-Busch Cos Inc have started talks over a friendly merger to create the world's biggest brewer, a source familiar with the situation said on July 11, according to Reuters.

The Belgian brewer has reportedly hiked its takeover bid for the brewer of Budweiser beer by $5 a share to $70, valuing its target at $45 billion, and Anheuser has also reportedly agreed to engage in friendly talks.

InBev refused to comment, and Anheuser-Busch could not immediately be reached.

This is a chronology of the events leading to the talks:

May 23, 2008 - Market speculation over several months concerning a deal between InBev and Anheuser-Busch comes to a head with a detailed report from on-line site FT Alphaville. The report details a $65 a share bid, financing arrangements and names bankers and lawyers working on a $46 billion deal.

June 11, 2008 - InBev's first letter to Anheuser. This outlines a $65 a share cash bid, valuing Anheuser at $46.3 billion. InBev says the bid price represents a 35 percent premium over Anheuser's 30-day average share price prior to recent market speculation.

InBev says the deal will be financed with at least $40 billion in debt, arranged by eight banks, ...More Info

Suntory Ltd. has garnered the No. 3 spot in market share for domestic beer and beerlike beverage sales for the first time since entering the field in 1963, surpassing Sapporo Breweries Ltd., according to industry data released on July 10.

Japan's top five major breweries revealed the sales data spanning the first half of this year.

Suntory's total shipment of beer and beerlike beverages rose by 10.8 percent from the same period last year, to 28.14 million cases--one case equaling 20 633 milliliter bottles.

Sapporo's total shipments dropped by 12.4 percent, to 26.16 million cases. Sapporo, the maker of "Yebisu" beer, had raised prices in April and saw first-half shipments plunge 12.4 percent, reducing its market share to 12.1 percent. Sapporo said in a statement that price differences had a far bigger impact than it had expected, as consumers have become more sensitive in their spending. "We will make company-wide efforts and will definitely hold the No.3 spot for the full year," it said.

By midday, shares in Sapporo were down 3.2 percent at 666 yen. Asahi rose 0.2 percent to 1,813 yen and Kirin fell 0.8 percent to 1,540 yen.

The market share of Asahi Breweries Ltd. for the January-June 2008 ...More Info

Carlsberg, the Danish brewing force, is planning to enter the country, aiming at pan-India presence for its product in the next six months, India Times posted on July 11.

Carlsberg beer is currently available in most of the states and in the next six months we will be entering South India giving us a pan-India presence, Pradeep Gidwani, Managing Director, South Asia Breweries, a part of Carlsberg Group said.

The company which set up its base in the country ten months back, has invested Rs 220 crores in its four manufacturing plants and breweries in Poanta Sahib (Himachal Pradesh), Aurangabad (Maharashtra), Alwar (Rajasthan) and Hoogly (Kolkata).

The company, which has its presence in 150 countries across the globe, now intends to consolidate its presence in the Indian market by launching it in all Southern states, Gidwani said.

The 161-year-old company has already launched its product in Delhi, Mumbai, Pune, Jaipur, Chandigarh, North-Eastern states apart from Goa.

Carlsberg is the only liquor company that offers all malt super premium beer in the country, he said adding, "we want to capture the market through our quality product. We have seen that people don't mind shelling little extra for it," he said.

Carlsberg ...More Info

Efes Breweries International N.V. (“EBI” or “the Company”) announced on July 9 its sales volume figures for the period ended 30.06.2008.

In the first six months of 2008 EBI’s total sales volume increased to 7.1 mhl, by growing 10.7% over the same period of previous year. Sales volume growth on an organic1 basis was 8.2% in the period. In the second quarter of 2008 sales volume growth year on year was 10.1%.

In Russia EBI’s sales volume increased to 5.6 mhl in the first half of 2008, achieving a growth of 12.0% over the comparable period of previous year. Despite the unfavorable weather conditions in the second quarter of the year and very strong base effect of previous year, our sales volume grew by 11.1% in the second quarter over the comparable period of previous year. Both our 1H and 2Q sales volume growth is above the estimated market growth rates in respective periods, impacted positively by the new launches through brand and packaging innovations.

In the first six months of 2008 EBI’s sales volume in Kazakhstan was 0.7 mhl, up by 14.6% over the comparable period of previous year. Double digit volume growth was achieved despite the strong base of 1H2007, when ...More Info

Obolon, one of Ukraine’s largest beer companies, increased beer production by 10.5% to 5.98 million hectolitres in the first half of 2008 compared to the same period of 2007, the company announced in a press release, according to Interfax.

The company's share of the Ukrainian beer market totalled almost 31% at the end of the half.

Obolon increased beer output by 1.9% to 1.13 million hectolitres in June alone. Beer exports grew 8.3% in June.

The company boosted beer production 16.5% to 1.09 billion litres in 2007. Obolon’s share of the Ukrainian beer market grew to 30.1% last year from 29.6% in 2006, while its share of production fell to 34.6% from 35%.

The Obolon brewery, which opened in 1980, was privatized in 1992. Four companies - SUN InBev Ukraine, Obolon, BBH and Sarmat - control more than 96% of the Ukrainian beer market.

Health campaigners have criticised a Scottish brewery for launching what it claims is the UK’s strongest beer, at 12 per cent alcohol by volume, The Financial Times posted on July 11.

BrewDog, the Aberdeenshire microbrewery, says its new beer, called Tokyo, is inspired by a 1980s arcade game played in Japan. Described as “intergalactic fantastic oak-aged stout”, Tokyo is brewed with specialist malts, jasmine and cranberries before ageing on toasted French oak chips.

“What justification can there possibly be to bring an extra strong beer on to the market? Super-strength drinks are often favoured by young people and problem drinkers – is this really who the brewery wants to target?”

A 330ml bottle of beer would normally have about 1.5 units, but Tokyo has about four units – the recommended daily limit for a man and more than the limit for a woman, Mr Law said.

James Watt, managing director of BrewDog, is philosophical in the face of such objections. “Everything in moderation, including moderation itself. What logically follows is that you must, from time to time, have excess – this beer is for those times.”

Retailing at £4 ($7.9), Tokyo costs £1 a unit of alcohol, compared with 3.8 units for £1 ...More Info

Malt exports to third countries in 2007/08 were sufficient for full employment of all operational EU malting factories. In France, Romania and Spain older factories were shut down before new capacities became available resulting in a lower annual production.

EU internal malt trade was larger, e.g. Romania imported 97.000 tons of malt from other EU countries during July – February 2007/08 vs. 57.000 tons a year earlier. Beer output in the Eastern countries of the EU was particularly good in 2007.

However, beer output in the first four to five months of this year disappointed, certainly in France, Germany and the U.K., but also Russia remained below its (high) target. In some regions malt deliveries were delayed and a few lots of malt became free for resale, shipment in 2008. Such malt lots found new homes fast, but the market action resulted in a narrowing of the price gap between old and new crop malt.

Domestic prices for 2008, delivered breweries are said to be around EUR 500,-, FOB in bulk in container for export EUR 515,- to 530,-, depending on quality parameters and contract terms.

Barley imports from Australia, Canada and France, although better than last year, still remain far below theoretical needs, but Chinese barley malt input in beer seems to have dropped even below 8 kilos per HL.

Chinese maltsters use as much local barley as possible and reportedly about 10 % wheat. China continues to construct malting factories, concentrating on the better barley lands of Xinjiang and Inner Mongolia.

The winter barley harvest in the Shanghai region is more or less finished, quality and WET condition reportedly poor. Xinjiang reports bad dryness, it is also dry in Gansu, but the province uses a lot of irrigation. The late harvest areas of Inner Mongolia and Heilongjiang in the Northeast report good prospects. Total barley crop forecast as per USDA is 3,2 Mill. tons, down 300.000 tons from last year.

The U.S. planted 1.671 mln ha of barley, a tiny bit more than last year. Barley fields are reported in good condition.

In Canada the Wheat Board, which is still holding on to its exclusivity status for all malting trade and feed barley exports, expects a Western Provinces crop of 9.9 mln t, the forecast for all Canada is 10.5 mln t. If the CWB achieves its goal of a 2.5 mln t malting barley pool, it can export 1.4 -1.5 mln t, sales to the U.S. and Mexico will be the largest part of it.

Feed consumption will increase somewhat, but the livestock sector is in poor shape. Firm U.S. corn markets should keep feed barley prices in the U.S. and in Canada too high to be competitive in world markets.

Governor Brian Schweitzer is asking Anheuser-Busch Cos. Inc. to honor its relationship with Montana farmers as the company wrestles with a buyout offer, Associated Press posted on July 9. He's urging company executives to keep them in mind when at the bargaining table, facing a possible European buy-out.

Schweitzer says Montana's decades-long relationship with Anheuser-Busch has been beneficial for the company and for barley farmers in the state.

Belgian brewer InBev SA is in the midst of trying to take over the maker of Budweiser. The contentious offer is heading to court. The turmoil has made some Northern Plains barley growers uneasy.

Roughly 25% of Budweiser beer is made with Montana barley. "They've invested a great deal of money in receiving stations in Fairfield, in Huntley, in Sidney," Schweitzer said. "And so we fully anticipate that whoever wins this battle that they will be committed to Montana. But I want to continue to work with them to make sure that Montana farmers continue to produce barley for Budweiser beer."

In a letter to the company, the governor asks it to honor the partnership as the buyout talks to continue.

Schweitzer says the company has at least $1.7 million in payroll and benefits in these communities. ...More Info

Tomáš Brányik, António A. Vicente, Pavel Dostálek and José A. Teixeira

Abstract

J. Inst. Brew. 114(1), 3-13, 2008 The attractive prospect of a continuous beer fermentation system consists mostly of the accelerated transformation of wort into beer. Although continuous beer fermentation has been studied as a promising technology for several decades, the number of industrial applications is still limited. The major obstacle hindering the extensive industrial exploitation of this technology is the difficulty in achieving the correct balance of sensory compounds in the short time typical for continuous systems. This paper offers an integral view on the particularities of continuous systems, which may impart beer a sensorial character distinct from conventionally fermented counterparts. The main groups of flavour active compounds are discussed from the perspective of possible control strategies by means of process parameters and strain selection ... Load full article, 6 pages, 456 Kb, PDF file