InBev, the world’s leading brewer, announced results for the second quarter and half year of 2008 (HY08) on its official site on August 14.

Volume performance

Total volumes are reported to have grown 0.7% in Q2 2008, while InBev’s own beer volumes increased at the slightly higher rate of 0.9%.

The majority of the company’s zones of activity delivered a better year on year performance in Q2 2008 versus the first quarter, and, as expected, Brazil resumed volume growth (+3.8%) after a slow start to the year. For HY08, total volumes as well as the company’s own beer volumes were 0.2% higher than HY07.

Market share gains

According to the report, InBev maintained or increased its market share in 8 of its top 10 markets, including the three key Western European markets.

Revenue

The giant’s consolidated revenue increased by 4.5% in Q208, and revenue per Hl was up by 3.7%. HY08 revenue was 4.6% higher than a year ago, driven by a 4.4% rise in revenue per Hl.

Cost of sales

Consolidated cost of sales (CoS) per Hl showed a 6.5% increase in Q208.

Although InBev experienced a strong increase in CoS per Hl in HY08 (Q108: +9.9%; Q208:+6.5%; HY08:+8.0%), as indicated in its Q108 disclosure, CoS per ...More Info

San Miguel Corp, Southeast Asia's largest food and drinks group, said its net profit tripled in the first half, boosted mainly by gains from asset sales, Reuters reported on August 12.

However, San Miguel, which began diversifying out of its core food businesses last year to enter mining and power, faces a difficult operating environment in the second half due to high raw material costs and as rising fuel and food costs crimps consumer spending.

The maker of Southeast Asia's oldest beer brand booked net income of 19.7 billion pesos ($US444 million) in January to June, topping the 6.6 billion pesos of a year earlier and its full-year 2007 net profit of 8.63 billion pesos.

Taking out first quarter net income of 11 billion pesos, net profit in the April to June period was 8.7 billion pesos, up 145 per cent on a year ago, Reuters' calculationsstate . San Miguel did not say if it revised its second quarter 2007 results.

San Miguel's first half results included gains of 5.67 billion pesos from asset sales in the first quarter, but the company did not say how much it made from the spin off and IPO of a five per cent stake in its ...More Info

Beer and quasi-beer shipments in Japan rose 9.6 pct from a year before to 52,346,000 cases in July, increasing for the first time in five months, Jiji Press reported on August 12.

According to industry officials, a long spell of hot weather increased demand rapidly, thus neutralising negative effects of product price hikes.

By category, shipments of so-called third-segment alcoholic beverages, which have little or no malt content, jumped 35.9 pct to 12,042,000 cases, reflecting consumer preference for low-priced products. Especially, Suntory Ltd.'s "Kinmugi," the only major brand for which price was kept unchanged, enjoyed strong sales.

Third-segment beverages took a 23.0 pct share in the overall bear and quasi-beer market, surpassing "happoshu" low-malt beer-like beverages for the third straight month.

Shipments of beer rose 3.4 pct to 29,048,000 cases, after four consecutive months of decline, and those of "happoshu" beverages grew 4.2 pct to 11,257,000 cases, up for the first time in six months.

It was stated that shipments increased for all the three categories for the first time in six months. One case contains the equivalent of 20 633-milliliter bottles.

By brewer, Suntory performed particular well with an outstanding 35 pct rise in shipments. All makers registered shipment growth.

AmBev, or Companhia de Bebidas das Americas, reported a 10.4% decline in its second-quarter earnings, hurt by higher expenses from provision for contingencies, losses from change in interest in subsidiaries and higher income tax expenses, RTTNews communicated on August 14.

It was reported that on an adjusted basis, earnings per share were up 5.9%. Net sales rose 4.7% in the quarter, driven by volume growth and price increases.

The net income posted by the company for Q2 2008 was R$402.1 million, or R$0.66 per share, down from R$448.7 million, or R$0.72 per share, a year ago.

Earnings per share excluding goodwill amortization rose 5.9% to R$1.47 from R$1.39 in the previous-year quarter.

Net sales reached R$4.74 billion, up from R$4.53 billion in the same quarter last year. Organic sales growth was 8.3%.

Net revenues per hectoliter were up 3.3%, impacted positively by price increases, continued focus on revenue management practices and the development of the premium segment in all of the major markets. Total volumes increased 5% on a reported basis and 4.8% organically during the quarter.

For the first six months of fiscal 2008, the company's net income rose 4.7% to R$1.15 billion from R$1.09 billion in the previous year. Earnings per ...More Info

SABMiller, the new owner of Sarmat Brewery, granted the Ukrainian company a credit of US$100 mln for a term of 5 years at a 10% annual interest. However, its competitors believe that the main task for the company at present is not to invest regularly in marketing and distribution, but to keep afloat, Kontakty UA posted on August 12.

Experts point out that the credit sum nearly equals half of the cost of the Ukrainian enterprise. The real value of the purchase had not been disclosed, but experts surmise SABMiller paid about US$200 mln for the Donetsk-based brewery.

“A US$100 mln investment is a serious sum for the Ukrainian beer market; during two years, it will help to increase Sarmat/SABMiller market share to 12% - 14%,” Alexander Sokolov, director of Pro-Consulting analytical department, believes. In his opinion, the money will be spent on advertising and distribution, including promotion in Ukraine of SABMiller’s international brands – the American Miller Genuine Draft, the Czech PilsnerUrquell and Velkopopovický Kozel.

Sarmat’s competitors are of a different opinion. Piotr Chernishov, general director of Baltic Beverages Holding Ukraine (BBH), is convinced that Sarmat is busy with other things at the moment. “It’s an unprofitable company. It ...More Info

Beijing Yanjing Brewery, one of the largest beer groups in China, is on track to expand its presence in the market, targeting at an annual beer output of 8 million tons, China Knowledge cited Li Fucheng, chairman of the board, on August 14.

According to the chairman, the Chinese beer producer hopes to sell 500,000 kiloliters of beer this year. The next step will be becoming one of the eight leading beer makers in the world.

Liu Xiangyu, vice general manager of the company, noted that Yanjing Brewery is actively engaged in marketing and promotion for its beer products after it has officially become the beer sponsor for the Olympics in 2005. He added the company expected to enhance its brand awareness through the opportunity provided by the grand event and boost its sales remarkably.

Yanjing Brewery said its net profits went up 31.42% to RMB 20.9 million in the first quarter of this year. The company realized a sales volume of 740,000 kiloliters during the first three months, up 9% over the corresponding period of last year.

The Ukrpivo Association uniting about 80% of Ukrainian brewers forecasts the production of beer to fall by 5.6% - to 34 mln hl in 2008, Ukrainian High Way cited Galina Korenkova, the association’s general director, on August 13.

Since the beginning of the year the nation’s beer market has grown by 8.6% only, whereas in 2007 it increased by 19%. Earlier, Ukrpivo forecasted that beer output would be 14% more – to 36 mln hl, but now it believes 6 – 6.5% will be at most.

Ukrainian producers brew 11.4% less beer in June compared to last year’s corresponding results. At the same time, over the first half of 2008 16575.2 thousands hl of beer were produced, which is 10% more than H1 2007 results.

Australian buyout firm CHAMP Private Equity is planning to sell malt producer United Malt Holding (UMH), the Australian Financial Review published on August 13.

CHAMP has previously flagged possible sale of United Malt.

United Malt will either be sold through a trade sale or floated on the stock market, and would be worth up to A$700 million. It is reported that Goldman Sachs JBWere and ABN Amro have been working on UMH for several months and now have a formal brief for a two-track process to seek either a trade buyer or press the button for an estimated A$700 million IPO. First round offers from trade buyers are expected to be called around October.

UMH was bought together just two years ago when Champ, together with Castle Harlan, its New York based affiliate, acquired Great Western Malting, Canada Malting Company, Barrett Burston Malting and a 60 per cent interest in Bairds Malt and brought them together in one company that currently has revenues of around US$700 million.

Malteries Franco-Belges, France’s first producer of malt, posted a turnover of €90.34 mln for the period July 1, 2007 – June 30, 2008, Le Revenu reported on August 13.

The turnover for 2006 – 2007 was €80.35 mln. Thus, the company’s activity grew by 12.43% over the last flexitime year.

For the second half turmover, Malteries Franco-Belges registered a 15.52% increase: €53.6 mln in 2007 – 2008 against €46.4 mln in 2006 – 2007.

Prices for feed barley have shown few changes on the French market this week, whereas malting barley prices are dropping, La Dépêche posted on August 13.

Feed barley

The situation in the port of Rouen is described by operators as tense due to the euro/dollar exchange rate. On the other hand, retention of the supply practiced by some sellers does not facilitate the trade. The market was slightly enlivened as a number of purchases were made by animal feed producers and some transactions carried out in the northern direction.

Malting barley

Prices dropping, the offer is reduced and the demand is not at its highest. Market activity is still low enough this week in France. However, operators wait attentively for the ultimate results of the crops from Northern Europe, with regard for both quantity and quality.

The EU barley crop is estimated to amount to 62.5 – 63.0 mln tons as compared to 57.5 mln tons a year ago. The final result may still be better, experts say.

This year, yields in France, the U.K. and Spain were near record levels, far above expectations before the start of harvest.

The IGC forecasts exports of 4.6 mln tons of EU feed and malting barley. During July 1 – 29 EU shippers booked 523,000 tons of export licences vs. 633,000 tons a year ago.

Contrary to last year, feed barley prices are competitive in domestic markets, and barley feeding will certainly increase. Nevertheless there were booked also 850,000 tons of import licences for maize and sorghum, probably for gap-filling during the two crops.

The EU Commission is preparing a regulation for a rapid reintroduction of the import tax scheme, because as per Commission rules the large EU crop and low market prices do not warrant tax-free imports any more. It has been promised to allow sufficient time for the execution of prompt deliveries under the tax-free scheme.

Industry and trade had been very reserved about crop prospects in Germany, planting had been late, weather had not been ideal, and fields looked thin. However, winter barley results are reported to be good.

This year the supply of domestic two-row winter malting barley may reach 150,000 tons. Unexpectedly, yields and grain size of spring barley harvested in the southwest and south of the Danube were good as well, albeit with variable protein contents from 10 to 13 %.

It is now estimated that the barley crop in the North and East will also be better than forecast, although some quantities will be down-graded to feed barley because of high protein.

Altogether Germany expects deliveries of 1.6 mln tons of spring plus 150,000 tons of winter malting barley, cutting down the import deficit to 700,000 tons.

Czech hop growers expect a better harvest this year after the previous two weaker years, Bohumil Pazler, chairman of the Czech Hop Growers Association, was quoted as saying by ČTK on August 8.

Last year's hop harvest amounted to 5,630 tonnes, and this year around 5.950 tonnes of hops may be harvested, he said.

Hops are grown on 5.345 ha this year. Growers expect a per ha yield of 1.08 to 1.1 tonnes on average, against last year's 1.04 tonnes.

Hop prices are expected to grow by 15 to 20 percent year-on-year. Farmers want a minimum of Kc180.000 to Kc200.000 a tonne to cover their input costs and eliminate the strong crown effects.

Around 80 percent of the hop harvest is exported.

The hop fields rank the Czech Republic third after Germany and the USA. Hops were grown on 51.000 ha in the world last year.

Kazumaru Iijima, Koji Suzuki, Shizuka Asano, Hidetoshi Kuriyama and Yasushi Kitagawa

Abstract

J. Inst. Brew. 113(1), 96–101, 2007 Four beer-spoilage strains, LA20, LA21, LA22 and LA23, were isolated from brewery environments. Based on the 16S rRNA gene sequence, LA20 was identified as Pediococcus inopinatus and the remaining three were identified as Lactobacillus backi. The homologs of horA and horC, the hop resistance genes originally identified in L. brevis ABBC45, were detected simultaneously in LA22 and LA23, while only a horA homolog and a horC homolog were found in LA20 and LA21 respectively. The 5.6 kb DNA regions containing the horA homolog in LA20 and LA22 were almost 99% identical with the corresponding region of ABBC45. Similarly the 8.2 kb regions containing the horC homolog in LA21 and LA22 were more than 99% identical with that of ABBC45. Interestingly the horA-containing 5.6 kb regions in LA20 and LA22 were found to be completely identical despite the distinct genus status. Coupled with the fact that LA20 and LA22 were isolated from the same sampling site, these results, taken collectively, reinforce our hypothesis that horA and horC genes were acquired by beer-spoilage species through horizontal gene transfer and confirm the usefulness of horA and horC as genetic markers for the species-independent determination of beer-spoilage ability in lactic acid bacteria. Key words: Beer-spoilage ability, hop resistance gene, horA, horC, horizontal gene transfer, Lactobacillus backi, Pediococcus inopinatus Load full article, 6 pages, 145 Kb, PDF file