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E-Malt.com Newsletter 42a
September 13 - October 15, 2008
Open!
Click here to get full size Newsletter


Quote of the week

"The man of wisdom is never of two minds; the man of benevolence never worries; the man of courage is never afraid."
Confucius
Currency Rates
Base Currency: Euro, EUR
on 15-October-2008

1 EUR = 1.3665 USD
1 EUR = 0.7814 GBP
1 EUR = 1.5652 CAD
1 EUR = 1.9332 AUD
1 EUR = 139.859 JPY
1 EUR = 2.8858 BRL
1 EUR = 35.6435 RUB
1 EUR = 9.3489 CNY
Base Currency: US Dollar
on 15-October-2008

1 USD = 0.7319 EUR
1 USD = 0.5719 GBP
1 USD = 1.1454 CAD
1 USD = 1.4149 AUD
1 USD = 102.35 JPY
1 USD = 2.1118 BRL
1 USD = 26.084 RUB
1 USD = 6.8416 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

October 15, 2008

Type Crop 2008 Crop 2009
2rs Barley EUR145.0-147.0 2.67% EUR162.0-164.0 2.40%
6rw Barley EUR135.0-137.0 1.45% EUR151.0-153.0 3.18%
2rs Malt EUR378.0-380.0 1.17% EUR390.5-392.5 1.26%
6rw Malt EUR364.5-366.5 0.68% EUR376.0-378.0 1.57%
Feed Barley EUR125.0-127.0 4.55% nq   

Note: Just click on the price link and you will be led to our Market Price History. Average barley market prices are French and are estimated on FOB Creil basis. Average Malt Prices are theoretical and based FOB Antwerp being estimated on French malting barley. The changes are compared to last Newsletter's prices. Arrows indicate the direction of the change.


Top Industry News

United Kingdom: SABMiller reports growth for the first half ended September, 30, warns of uncertain future ...Click here
Belgium: InBev says postponed equity offering will not affect completion of the combination with Anheuser-Busch ...Click here
Australia: Experts name SABMiller as the most likely contender to bid for Foster’s beer brands if they come on to the market ...Click here
Japan: Suntory secures a stable #3 spot in H1 beer shipments and forecast to outrace Sapporo in the annual ranking as well ...Click here
Kenya: Keroche Breweries to challenge Diageo, ready even for “Beer War 2” ...Click here
Russia & Kazakhstan: Baltika starts shipments of beer to Kazakhstan ...Click here
World: Maltsters sold out for 2008 shipments, hardly to expand capacities against financial crisis and uncertain beer output forecasts ...Click here
United States: Barley crop to exceed latest forecast by 10%, prices decline ...Click here
Canada: Malting barley down C$8 a tonne, feed barley declines by C$22 - CWB mid-October PRO ...Click here
United Kingdom: Barley growers to become closer to the beer industry through a new Muntons Malt Supply Chain ...Click here
Australia: Feed barley back at AU$240, malting barley unchanged at AU$345 ...Click here




Ukraine: Obolon brewery reports good results for January – September 2008 ...More Info
United Kingdom: SABMiller to restrict distribution of Peroni in the UK ...More Info
Romania: Ursus Breweries forecasts positive growth for the nation’s beer market ...More Info
India: SABMiller India officially launches long-expected Indus Pride beer ...More Info
Australia: SQP reduces malting barley pool returns to AU$310 - AU$330/tonne, feed barley – to AU$220 - AU$240/tonne ...More Info
Russia & Azerbaijan: Baltika to increase beer production at its Baku-Castel brewery ...More Info
Belgium & United Kingdom: UK consumers to buy draught Duvel freely ...More Info
Australia: Foster’s two new beers target niche categories consumers ...More Info
Estonia: A. le Coq brewery reports sales results for January – September, 2008 ...More Info
Go to our news database with more than 13708 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

United Kingdom: SABMiller reports growth for the first half ended September, 30, warns of uncertain future

SABMiller plc published an updated report on its performance during the six-month period ended September, 30 (which is the first half of its financial year) on October, 14.

According to the brewing giant, a 3% growth was recorded in lager with organic lager volumes marginally ahead of the prior year (up 1% in the second quarter). This reflects a high comparable (organic lager growth of 9%) and moderating consumer demand in many markets. Group revenue growth has been assisted by firm pricing, with revenue per hl at constant exchange rates growing in excess of 5%, and this has continued to offset the impact of higher input costs, the company said.

As it was reported, financial performance for the six months was in line with the group’s expectations, benefiting from generally favourable exchange rates when compared with the prior year, whilst on an underlying basis slower volumes have constrained profit growth. Deteriorating global economic conditions, weakening consumer demand and volatile exchange rates make the prospects for the rest of the financial year increasingly uncertain.

In Latin America, lager volumes grew by 3%. Lager volumes in Colombia were 3% below the prior year, showing some improvement in the trend recently, although high consumer lending rates ...More Info


Belgium: InBev says postponed equity offering will not affect completion of the combination with Anheuser-Busch

InBev‘s previously announced rights offering will be postponed until market conditions stabilize, the brewer posted on its official website on October, 14.

The company said the decision was taken as a consequence of unprecedented volatility in the global capital markets, particularly during the last week.

The Board of Directors will continue to monitor market conditions to determine the appropriate time to launch the rights offering, it was announced.

The company reaffirmed its expectation that it will complete the acquisition of Anheuser- Busch by year-end 2008 following approval by Anheuser-Busch shareholders and receipt of remaining regulatory approvals. The decision to postpone the equity offering will not affect completion of the combination with Anheuser-Busch, it said.

InBev also reconfirmed the strong support of its bank group, who has provided the financing for the transaction on the basis of certain funds commitments and complete loan documentation for both the USD45 billion acquisition facility and the USD9.8 billion equity bridge facility. The equity bridge facility has a postclosing maturity of six months, within which period InBev may tap the equity markets at any time.

Carlos Brito, InBev CEO said: " We are moving forward confidently and expect to complete the combination of the two great companies by the ...More Info


Australia: Experts name SABMiller as the most likely contender to bid for Foster’s beer brands if they come on to the market

As the Australian Foster’s is reportedly preparing its takeover defences, analysts are making suggestions on who would be interested in the company’s beer business, the Financial Times posted on October, 13.

"Wine has always been the poison pill so its sale or demerger would liberate the beer business," a person close to the situation said.

Analysts estimate Foster's beer assets could be worth close to A$12bn (US$7.8bn). SABMiller, the London-based brewer, is a strong contender to bid for the beer brands if they come on to the market.

The brewer, which already owns the Foster's brand in India and has a joint venture with Foster's to brew and sell the brand in the US, is understood to be seriously interested in buying its rival's beer assets, which include upmarket brands such as Cascade and Crown Lager as well as mainstream brands Victoria Bitter and Carlton Draught.

SABMiller already has a presence in Australia via its joint venture with Coca-Cola Pacific Ventures, which is building a brewery on the country's east coast.

The venture sells SABMiller's international brands, including Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft, and last year bought Bluetongue, a boutique brewery.

JPMorgan says Australia is one of the most profitable large beer ...More Info


Japan: Suntory secures a stable #3 spot in H1 beer shipments and forecast to outrace Sapporo in the annual ranking as well

Japan’s brewer Suntory, which was ranked third for the first time in beer shipments in H1 2008, took a 12.9% share between January and September, the Mainichi Daily News communicated on October, 11.

Thus, the company increased its lead over fourth-ranked Sapporo Breweries by 1.1 points.

According to a report published at the end of last week by Japan's major breweries, Suntory is almost certain to secure the No. 3 spot in the annual ranking as well, shipping out 3.94 million cases more than Sapporo.

Japan’s breweries started raising prices from February due to rising raw material costs, but Suntory managed to increase sales by pushing back a price hike until the end of August, the market's peak season. Suntory shipped out 45.54 million cases between January and September, a 13.5 percent increase over the previous year. Shipments of Suntory's third-category beer -- relatively cheaper than beer and low-malt beer -- increased by 38.9 percent over 2007, significantly boosting its total, it is reported.

Meanwhile, Sapporo remained at an 11.8 percent share after shipping out 41.6 million cases, a 9.7 percent decrease from the previous year, due to the poor sales of its low-sugar beer released in February this year. Not planning to release ...More Info


Kenya: Keroche Breweries to challenge Diageo, ready even for “Beer War 2”

Kenya’s Keroche Breweries is preparing to challenge the might of East African Breweries (EABL) when it launches its new beers later this month, Reuters published on October, 12.

The brewery hopes to tap a spring of consumer patriotism among a growing middle class in east Africa's largest economy, though it knows it will have to take on one of the world’s largest alcoholic drinks group - Britain's Diageo Plc.

EABL, a Nairobi bourse blue chip and east Africa's second largest company by market capitalization, is majority-owned by Diageo, maker of Guinness, a beer popular across Africa.

Multinationals like Diageo and London-based SABMiller dominate Africa's drinks industry, leaving local brewers with small niches in a market where consumption is growing as prosperity swells the ranks of the middle class.

Diageo and SABMiller went head to head in Kenya in the late 1990s in what became known as the Beer Wars.

Castle Breweries, an SABMiller subsidiary, closed its Kenyan operation after four years in 2002, citing high import duties as a sign of local hostility. The multinationals agreed a geographical carve-up to stem costs, leaving EABL dominant in Kenya and SABMiller in neighboring Tanzania.

Many Kenyans stuck by EABL because it has a minority Kenyan shareholding. Its ...More Info


Russia & Kazakhstan: Baltika starts shipments of beer to Kazakhstan

Russia’s Baltika Brewery has started shipments of beer from its Novosibirsk plant to Kazakhstan, the company reported on October, 13.

As it was announced, the export agreement includes such brands as Baltika #3, Baltika #5, Baltika #7, Baltika Cooler and Baltika LITE.

According to the official information, Kazakh consumers are to receive more than 50 goods vans with beer. The delivery is to be carried out by Baltika’s own railway cars. The company noted that the use of new logistics schemes will significantly reduce cost of transport.

In Kazakhstan, Baltika is cooperating with such major distributing companies as Farvater, INTER-PIVO, Craft-2, and others.


Malt News

World: Maltsters sold out for 2008 shipments, hardly to expand capacities against financial crisis and uncertain beer output forecasts

Of the annual malt demand, 60 – 70% are traded under long-term agreements (LTA’s), experts informed earlier this month admitting it has become rather difficult to report on malt markets.

According to industry participants, the large international brewing corporations, Inbev, Anheuser Busch, SAB Miller, Carlsberg, Heineken cover most of their demand by LTA’s, buying the open price barley part fairly regularly during the year. Many medium-size brewers purchase part of their demand with LTA’s.

Most LTA’s are thought to run until 2011, experts report.

According to analysts, there remains very little open demand for malt in the EU, Africa, Japan and Venezuela. Open markets are the U.K., Russia, Southeast Asia, Brazil.

EU maltsters are very well sold for crop 2008, delivery 2009. They must refuse to offer to late buyers, experts say.

According to reports, U.K. maltsters have reserved the necessary volume for their domestic customers. Russia will be self-sufficient, but purchase some lots from neighbouring Finland and China. Brazil will cover around 800,000 tons of their total demand of 1.1 mln tons inside Mercosur, from their own maltsters, Uruguay and Argentina.

The Southeast Asian market will be covered mainly from Australia and China. World supplies would be insufficient without the Chinese sales. That country ...More Info


Barley News

United States: Barley crop to exceed latest forecast by 10%, prices decline

The US 2008 barley harvest is almost 92 percent complete nationwide. Even though North Dakota crop conditions are quite variable, the crop ended up being slightly larger than what was expected, which is putting downward pressure on the prices for both feed and malting barley, Farm & Ranch Guide reported on October, 10.

“Crop conditions were quite variable,” said Steve Edwardson, executive administrator of the North Dakota Barley Council. “Some areas in western North Dakota experienced yields too low to justify harvesting, largely due to drought conditions. However, yields in eastern North Dakota were better than expected, thus contributing to higher than expected production for the state in 2008.”

The Small Grains Summary Report, which was released by the USDA's National Agricultural Statistics Service on Sept. 30, indicated 3,767,000 acres of barley were harvested in the nation, which is a 7 percent increase from 2007. North Dakota growers harvested 1,540,000 acres, which is a jump of 10 percent of the July 2008 estimate. In 2007, North Dakota farmers harvested 1,390,000 acres.

Harvested acres remained the same in Minnesota when comparing this year to last year with 110,000 acres while Montana's harvested acreage increased slightly in 2008 to 740,000 acres versus 720,000 acres last ...More Info


Canada: Malting barley down C$8 a tonne, feed barley declines by C$22 - CWB mid-October PRO

The CWB released its mid-month barley Pool Return Outlook (PRO) for the 2008/09 crop year on October, 9.

According to the Board’s outlook, malting barley values are down C$8 a tonne from the September, 25 PRO and feed barley values have declined by C$22 a tonne.

The price for feed barley was set at C$198 per tonne by the Mid-October PRO (C$220 in September).

Two-row malting barley price is C$327 (C$335 in September), and six-row malting barley value is C$307 this month (C$315 in September).

Commenting on the established feed barley values, the CWB posted:

“A further decline in U.S. corn futures during the past two weeks has largely reflected the weakening global price outlook for feed grains. Export competition from European and Black Sea regions continues to pressure prices. An improved outlook for Australian production, coupled with limited nearby global demand, has put further downward pressure on feed barley values. Expectations for the Australian barley crop and competitive impacts in key Japanese and Middle East markets has resulted in a significant decline in the tradable export feed barley outlook.

Ocean freight rates are a particularly important variable in international feed barley markets and the dramatic changes in these rates have the potential to change ...More Info


United Kingdom: Barley growers to become closer to the beer industry through a new Muntons Malt Supply Chain

Muntons Malt Supply Chain is a new company set up to bring barley growers closer to brewers and distillers, Farmers Weekly posted on October, 9.

This is a collaborative business for the delivery of long-term (five-year) barley contracts and the development of a new 24,000t storage complex at Bridlington, Yorkshire, sources reported.

The scheme involves such companies as Grainfarmers, Grain Co, Centaur Grain and Muntons, as well as some of the company’s largest brewers and distillers, including Carlsberg UK, InBev UK, Angus Dundee, Inver House Distillers, Joseph Holt, and Diageo.

Through the co-ops, growers can sign up to branded contracts, specific to individual end-user requirements. Prices were set at a fixed premium over feed, with quality bonuses and potential to lock into futures prices, said Guy Newsam of Muntons.

"The new intake facility - which opens next year - will allow growers to move all their barley to us at harvest, reducing their need to dry and store grain and cutting the risk of spoilage," he said. "But the key thing is that it's about making the supply chain work better."

The English Farming and Food Partnership (EFFP) brokered the deal, which should give farmers more confidence about growing malting barley, EFFP's Paul Rhodes ...More Info


Australia: Feed barley back at AU$240, malting barley unchanged at AU$345

The continuing drought reduces the confidence in production and the trade of grain. Despite some small tonnages committed during the year, forward sales of grain have been minimal this year, the Australian Weekly Times published on October, 8.

According to market participants, new crop feed barley prices were back AU$10 last week to AU$240 delivered port.

The declining production of malting barley has left malting barley prices unchanged at AU$345 port.

Old crop feed barley prices were also down AU$35 to AU$310 delivered Melbourne. Traders say that little volume is trading and growers are cleaning up stocks ahead of the harvest.

Scientific Digest

The Measurement of Structural Characteristics of Barley for Shochu Using Single-Kernel Characterization System 4100 Crush-Response Profiles

A. Iwami, B. G. Osborne, H.-N. Huynh, R. S. Anderssen, I. J. Wesley, Y. Kajiwara, H. Takashita1 and T. Omori

Abstract

J. Inst. Brew. 111(2), 181–189, 2005 The selection of grain that is optimum for barley Shochu is not straightforward. Usually malting barley is used, but not all malting barley samples perform well in Shochu production. In addition there is a genotype ? environment effect, so that a given variety may perform satisfactorily in one environment but not another. Therefore a method for testing samples for Shochu is required. This group has previously reported on the evaluation of barley for Shochu production using the Single Kernel Characterization System (SKCS) and demonstrated a significant correlation between the SKCS Hardness Index and pearling performance. The Hardness Index values are multivariate statistical predictions derived from an incremental change analysis of the crush-response profiles. In the present study, a detailed analysis was performed of the averaged SKCS Crush-Response Profiles of barley, obtained when measuring the SKCS Hardness Index. It was concluded that the morphological differences between averaged barley SKCS Crush-Response Profiles appear to allow barley varieties to be classified into four distinct classes. In addition, the elastic response to the crushing on the SKCS device of the aleurone layers of barley kernels yields a useful predictor of pearling quality /performance. Key words: Aleurone layers, barley, crush-response profiles, hardness, pearling, shochu, SKCS. Load full article, 9 pages, 749 Kb, PDF file

Barley Prices

French Malting Barley Prices. Nominal prices
EURO = USD 1.3665 October 15, 2008 
 Crop year   2008   2009 
 Parity   FOB Creil   FOB Creil 
 Position   July 2008   July 2009 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  148.00  202.50  165.00  225.50 
2RS  Prestige  147.00  201.00  164.00  224.50 
2RS  Cellar  146.00  199.50  163.00  223.00 
2RS  Sebastien  145.00  198.50  162.00  221.50 
2RS  Tipple  145.00  198.50  162.00  221.50 
2RS  Henley  145.00  198.50  162.00  221.50 
6RW  Esterel   136.00  186.00  152.00  208.00 

French Feed Barley Prices. Nominal prices
EURO = USD 1.3665 October 15, 2008
Crop year 2008
Parity FOB Creil
Position July 2008
Type EURO USD
Feed Barley 126.00 172.18


Theoretical Malt Prices

EURO = USD 1.3665 October 15, 2008 
Crop year  2008 
Parity  FOB Antwerp 
Position  Oct 2008 - Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO USD EURO  USD EURO USD  EURO  USD
2RS  Scarlett  381.50  521.00  412.50  563.50  405.00  553.00  419.00  572.50 
2RS  Prestige  380.00  519.50  411.50  562.00  403.50  551.50  418.00  571.00 
2RS  Cellar  379.00  517.50  410.00  560.50  402.50  549.50  416.50  569.00 
2RS  Sebastien  377.50  516.00  408.50  558.50  401.00  548.00  415.50  567.50 
2RS  Tipple  377.50  516.00  408.50  558.50  401.00  548.00  415.50  567.50 
2RS  Henley  377.50  516.00  408.50  558.50  401.00  548.00  415.50  567.50 
2RS   Average price  379.00  517.50  410.00  560.50  402.50  549.50  416.50  569.00 
6RW  Esterel   365.50  500.50  397.50  543.50  390.00  533.00  404.50  552.50 
Asia Malt 70/30  375.00  512.50  406.50  555.00  398.50  544.50  413.00  564.00 
**  Asia Malt 50/50  372.50  509.00  404.00  552.00  396.00  541.50  410.50  560.50 


EURO = USD 1.3665 October 15, 2008
Crop year 2009
Parity FOB Antwerp
Position Oct 2009 - Sep 2010
Conditioning Bulk In bags Bulk containers Bags, containers
Malting barley variety EURO USD EURO USD EURO USD EURO USD
2RS  Scarlett  394.00  538.50  425.50  581.00  417.50  570.50  431.50  590.00 
2RS  Prestige  392.50  536.50  424.00  579.50  416.50  569.00  430.50  588.50 
2RS  Cellar  391.50  535.00  422.50  577.50  415.00  567.00  429.50  586.50 
2RS  Sebastien  390.50  533.50  421.50  576.00  414.00  565.50  428.00  585.00 
2RS  Tipple  390.50  533.50  421.50  576.00  414.00  565.50  428.00  585.00 
2RS  Henley  390.50  533.50  421.50  576.00  414.00  565.50  428.00  585.00 
2RS   Average price  391.50  535.00  422.50  577.50  415.00  567.00  429.50  586.50 
6RW  Esterel   377.00  516.50  409.50  559.00  401.50  548.50  415.50  568.00 
Asia Malt 70/30  387.50  529.50  418.50  572.00  411.00  561.50  425.50  581.00 
**  Asia Malt 50/50  385.00  525.50  416.00  568.50  408.50  558.00  422.50  577.50 

NB: Prices published are theoretical malt prices including financial cost, THC (for bulk and bags container) and all administrative costs. This prices may fluctuate according to the quantity per delivery and technical specifications.

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

Graph of the Week



These Days in Business History
October 13
1884 Greenwich established as universal time meridian of longitude
1971 Intel Corp. goes public on NASDAQ.
1987 Walter H Brattain, U.S. physicist (transistors, Nobel 1956), dies at 85

October 15
1878 Edison Electric Light Company incorporated
1908 John Kenneth Galbraith is born, economist, Affluent Society-58 Hillman Award
1993 Amstel brewery on Curaçao produces 1,000,000,000th bottle
Agenda