InBev expects that the subscription period for its $9.8 billion rights issue to complete the takeover of peer Anheuser-Busch will be open from 16 October 2008 to 30 October, the company’s press release communicated on October, 3.

The move is subject to a final decision by its Board of Directors to proceed with and effectively launch the rights issue.

BNP Paribas, Deutsche Bank and J.P. Morgan are acting as joint global coordinators and joint bookrunners for the rights offering.

Fortis Bank, ING, ABN AMRO and Santander are acting as joint lead managers.

The definitive dates of the subscription period, and other terms of the rights issue, will be detailed in an announcement to be published by InBev in due course, the brewer said.

Anheuser-Busch Cos. Inc. announced on its official website on October, 3 that it achieved good U.S. beer volume growth in the third quarter.

Driven by the successful national introduction of Bud Light Lime, U.S. beer shipments-to-wholesalers increased 2.3 percent for the third quarter, with sales-to-retailers for the quarter up 3.6 percent, the company reported.

In addition, the brewer said the pricing environment in the U.S. beer market continues to be favourable. Management expects revenue per barrel to increase nearly 4 percent in the third quarter, including favourable brand mix. As planned, implementation of the company’s 2009 price increase plan was initiated in the latter half of September.

By October 1, Anheuser-Busch had taken pricing actions covering over 85 percent of the company’s U.S. beer volume, it is reported.

Cost of goods sold per barrel for the U.S. beer company is expected to increase slightly less than revenue per barrel in the third quarter, yielding gross margin expansion in the period.

Anheuser-Busch informed that its international beer operations are also performing well. International beer operations volume is expected to be up mid-single digits in the third quarter with pretax profits up over 20 percent (excludes equity income).

Packaging segment pretax income in the ...More Info

Mexico’s Grupo Modelo will seek arbitration over Anheuser's proposed takeover by InBev, Reuters reported on October, 3.

This is a move that could possibly disrupt the deal, experts comment.

Modelo brewery is half-owned by Anheuser-Busch and has yet to approve the takeover. In July, the brewer of Corona said its relationship with Anheuser gave it contractual rights to choose whether it would ally with InBev.

It is reported that Modelo sent Anheuser a letter saying it would file for arbitration regarding its claim that Anheuser would violate their contract if the InBev deal was consummated without Modelo's consent.

A Modelo spokeswoman confirmed the letter was sent but declined to comment further.

The American brewing giant said it believes “such claims are entirely without merit” and that it will “vigorously contest such claims,” according to a filing of October, 3 with the Securities and Exchange Commission. “A-B believes that the arbitration proceeding will have no impact on the completion of the transaction with InBev.”

In a research note titled "Last call for Modelo?" Credit Suisse analyst Tufic Salem said Modelo's action suggested it had no grounds to influence the InBev deal, and that the move to arbitration could backfire.

"Our understanding of the Modelo-AB contract gives no ...More Info

Heineken N. V. has received unconditional approval from the Irish Competition Authority in relation to the acquisition of the Irish Beamish & Crawford, the Dutch company said in an official statement on October, 3.

Heineken said it welcomed the decision and would immediately engage with Beamish & Crawford to start the integration process in Ireland.

Founded in 1792, Beamish & Crawford's flagship product is Beamish stout. The company is a subsidiary of Heineken's latest significant share acquisition - Scottish & Newcastle.

Heineken Ireland corporate affairs manager Declan Farmer said the company had not had "any visibility" of the Beamish and Crawford operation as the brewery had operated independently while the takeover was being reviewed by the Competition Authority.

"We want to gain some insight into the operation of the Beamish and Crawford brewery with a view to charting an integration strategy on how best we can merge both breweries," he said.

Meanwhile, staff at Beamish and Crawford fear Heineken's acquisition of the brewery will lead to rationalisation and job losses at the Beamish plant.

Mr Farmer said it was impossible to say what would happen pending a review by Heineken of the Beamish operation and he was unable to give a date for completion of that ...More Info

Anheuser-Busch Cos. Inc. announced on its official site on October, 6 that its special meeting for shareholders to consider and vote on the combination between InBev N.V./S.A. and Anheuser-Busch will be held on Nov. 12 at a New York-area location.

According to the brewer, at the closing of the transaction, shareholders of Anheuser-Busch will be entitled to receive $70 for each share of stock held by them, and Anheuser-Busch will become a wholly owned, indirect subsidiary of InBev.

As announced in July, the board of directors of Anheuser-Busch unanimously recommends that Anheuser-Busch shareholders approve the transaction with InBev. Closing of the transaction is subject to approval of shareholders of both companies, necessary regulatory approvals and other customary closing conditions. On Sept. 29, InBev shareholders approved the combination.

Danish Carlsberg reported on October, 3, that its key Russian market was slightly weaker in the third quarter compared to the same period last year.

“The Russian market is estimated to have been slightly down compared to the third quarter 2007 reflecting principally exceptionally poor weather across the region. This has been particularly prevalent in the second half of the quarter. Volume growth, particularly in the lower priced segments of the market, has also been held back by rising prices as well as recent volatility in the global markets,” the company posted on its Website.

“For 2008 as a whole, we now expect the Russian beer market growth to be 1 - 2%. Key fundamentals for growth in Russia remain unchanged and support a medium term growth rate of 3 - 5% per year with existing premiumization trends continuing,“ Carlsberg reported.

The brewer said it will release its official third quarter results on 5 November 2008.

"That Carlsberg is downgrading its outlook for the total Russian market this year is negative, but on the other hand the share has fallen dramatically over the last few months so this should already have been priced into the share," Jyske Bank analyst Jens Thomsen ...More Info

Dutch brewer Heineken NV will continue to focus on mature markets where margins are higher, Chief Executive Officer Jean- Francoise Van Boxmeer was quoted as saying by Dow Jones on October, 3.

According to Mr Van Boxmeer, the costs involved in setting up breweries in emerging markets are nearly as high as in western, or mature markets, where the brewer can charge higher prices.

“Variable input costs rose 15% in 2008 and the firm expects a further 9% increase in these costs in 2009, which will mean the price of beer will rise,” the CEO informed.

Besides, Mr Van Boxmeer said the brewer is feeling the effects of smoking bans across Europe, particularly in the U.K. and the Netherlands. He didn't quantify the impact of the smoking bans but he said although margins are higher from beer sales in bars and cafes, Heineken sells more beer through supermarkets.

“After the recent purchase of Scottish & Newcastle, Heineken is not looking for new acquisitions at the moment. The priority for the next three years is to reduce ratios,” the CEO said.

Heineken, the world's fourth-largest brewer by volume after Anheuser-Busch Cos. Inc., InBev SA and SABMiller PLC, produces 67.2% of its beer by volume in Western ...More Info

Present malt prices are composed of barley prices, high cost of energy, complete sales books of EU maltsters, and an increasing credit squeeze, analysts informed earlier this month.

Based on present barley prices, a calculated price for 2RS malt ex works is around EUR 380 per ton for delivery in 2009, it is reported.

Other analysts report FOB seaport prices of EUR 378 to 392 FOB seaport, with premiums of EUR 10 to 20 for crop 2009, delivery 2010.

However, experts inform that these theoretical prices are worth very little in sold out markets. E.g, a recent business is reported for prompt delivery well above EUR 400.

The world barley crop will be 152.8 mln tons vs. 133.2 last year, IGC estimates stated earlier this month.

Consumption will increase from 136.1 to 148.2 mln tons, it is forecasted.

According to analysts, it will be the first time since years that the world crop covers the annual demand, and end stocks are estimated to be 25.6 mln tons, up 4.5 mln tons from 2007/08.

It is reported that both USDA and IGC expect a world trade figure of 19 mln tons during this crop year, which may turn out to be too low.

Barley export figures to-date are as follows:

EU export licence bookings July/Sept 1.637 mln tons

Ukrainian shipments July/September 2.745 mln tons Russian shipments July/September 0.681 mln tons U.S./Canadian shipments July/mid Sept 0.173 mln tons Total without Australia (not available) 5.236 mln tons

Barley markets over the last week were inactive, experts report. Prices dropped in connection with the other grain markets without any large business.

According to traders, French 2RS barley was offered at EUR 159, July, FOB Creil, and EUR 168, July, FOB Moselle. 6RW barley had nominal values: Esterel EUR 145, Cervoise 135, both July, FOB Creil, however a premium of only EUR 5 FOB Moselle. German 2RS malting barley dropped to EUR 180, autumn/winter delivery, delivered Rhine and (river) Main stations, it is reported.

Premiums for new crop 2009 barley are EUR 15 to 20 per ton in both countries, but it is difficult to purchase large quantities, experts inform. The expectation is for smaller acreage and consequently firmer markets next year.

Since the beginning of 2008/2009 marketing year (July) up to September, 30, the EU Cereals Management Committee licensed the export of 1.64 mln tonnes of barley, APK-Inform communicated on October, 7.

During the same period in 2007/2008, the Committee issued export licenses for 1.55 mln tonnes of barley, experts report.

Besides, in July – September European importers were granted import licenses for 165 thousand tonnes of barley (26 thousand tonnes in the same period in 2007/2008).

Boston Beer Company announced on its website earlier this month it is comfortable releasing 20,000 pounds of German Noble Tettnang Tettnanger hops to help brewers who still experience shortages or lack hops to bridge their 2008 crop deliveries.

As the 2008 hops crop appears to be good and promises to greatly reduce last year’s hop shortage, there may be brewers who still have difficulties, the company said. First in line for this second offering are brewers who requested Tettnang hops from Boston Beer last time around but, because of the number of requests, couldn’t get what they needed, it was announced.

Boston Beer offers for sale type 90 pellets from the 2007 crop. They are the same hops the company itself uses to brew its beers. They are packed in 22# foil bags, boxed four bags to a box and will be shipped from cold storage. The company said it is again selling these hops at its cost. The prices will be the same: $5.72 per pounds for the Tettnang plus $0.75 per pound for shipping and handling.

The company said it continues to have a maximum of 6 boxes per brewer (528 lbs.) and a minimum of 88 lbs. The deadline for ...More Info

Michiko Kobayashi, Toshinari Hiroshima, Keisuke Nagahisa, Hiroshi Shimizu and Suteaki Shioya

Abstract

J. Inst. Brew. 111(2), 128–136, 2005 Apparent extract concentration, which is defined as the apparent total dry matter concentration in the media calculated by measurement of the specific gravity, is a very important variable in the process of beer and low-malt beer fermentation. In the present study, ethanol formation and the residual apparent extract concentration were estimated using the CO2 concentration in the exhaust gas. A simple mathematical model involving the CO2 production rate, temperature and cell activity was constructed and a novel system for on-line estimation and control of apparent extract concentration was developed. In the control system for the residual apparent extract concentration, cell activity was estimated by monitoring the differences in actual CO2 production rate. In addition, the future trajectory of the apparent extract concentration was predicted. The degree of fermentation, i.e., the residual apparent extract concentration trajectory, was controlled by raising or lowering the temperature, taking into account the estimated cell activity at that time. The residual apparent extract concentration reached the target value at a given time, using the on-line estimation of apparent extract concentration and temperature control. Key words: Apparent extract, CO2 production rate, control, lowmalt beer, on-line estimation. Load full article, 9 pages, 1039 Kb, PDF file