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E-Malt.com Newsletter 42b
September 16 - October 19, 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 17-October-2008

1 EUR = 1.3449 USD
1 EUR = 0.7799 GBP
1 EUR = 1.601 CAD
1 EUR = 2.0118 AUD
1 EUR = 134.947 JPY
1 EUR = 2.9842 BRL
1 EUR = 35.4074 RUB
1 EUR = 9.2143 CNY
Base Currency: US Dollar
on 17-October-2008

1 USD = 0.7437 EUR
1 USD = 0.5799 GBP
1 USD = 1.1904 CAD
1 USD = 1.4958 AUD
1 USD = 100.346 JPY
1 USD = 2.2189 BRL
1 USD = 26.327 RUB
1 USD = 6.8512 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

October 17, 2008

Type Crop 2008 Crop 2009
2rs Barley EUR142.0-144.0 2.05% EUR155.0-157.0 4.29%
6rw Barley EUR133.0-135.0 1.47% EUR145.0-147.0 3.95%
2rs Malt EUR374.0-376.0 1.06% EUR382.0-384.0 2.17%
6rw Malt EUR362.0-364.0 0.68% EUR368.5-370.5 1.99%
Feed Barley EUR121.0-123.0 3.17% 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: Diageo reports 6% sales growth in Q1, reiterates target of 7 – 9% organic operating profit growth in the coming year ...Click here
Belgium: Inbev discloses shareholdings information ...Click here
Philippines: San Miguel Brewery achieves a 23% net income increase in January – September 2008 ...Click here
Mexico & United States & Belgium: Grupo Modelo files a notice of arbitration against the merger between InBev and Anheuser-Busch who say the Mexican brewer’s claim has no merit ...Click here
Belgium: Analysts suppose InBev may invite “strategic investors” to help with the Anheuser-Busch acquisition ...Click here
Australia: ABB reports soaring full-year profit after expanding Ukraine and New Zealand barley operations ...Click here
France: Total barley production to amount to 12 mln tonnes in 2008 ...Click here
EU: Feed barley prices slightly recover, malting barley market still almost motionless ...Click here
Canada: CWB recommends Canadian government to raise 2007/08 initial payments for barley ...Click here
World: Preliminary hops harvest results suggest the supply crisis is coming to an end ...Click here




Australia & New Zealand: Coca-Cola Amatil enjoys excellent results of its beer division ...More Info
Denmark & United Kingdom: Carlsberg UK to be headed by the CEO of Carlsberg South East Europe ...More Info
Russia: Beer production drops by 28.8% in September, experts agree on grim prospects for the industry ...More Info
UK & India: Cobra Beer appoints managing director for its Indian operations ...More Info
Australia: GrainCorp to run Harvest ’08 barley pools in all mainland states ...More Info
Belgium & United Kingdom: InBev denies launching new Stella lager with a higher abv than available ...More Info
Serbia & Cuba: Serbian beer exported to Cuba ...More Info
Latvia: Beer industry fails to grow by even 1% ...More Info
Philippines: Asia Brewery Incorporated launches a marketing campaign for a flagship beer after a three-year break ...More Info
Ghana: Guinness Ghana Brewery invests $40 mln in expansion ...More Info
Go to our news database with more than 13728 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

United Kingdom: Diageo reports 6% sales growth in Q1, reiterates target of 7 – 9% organic operating profit growth in the coming year

Diageo’s net sales growth in the three months period ended September, 30 was 6% and its financial position showed no material change during the period, the brewing giant announced on October, 15.

£277 million of share repurchases as part of the share buyback programme were the principal reason for the movement in net assets from £4.2 billion at 30 June 2008 to £4.1 billion at 30 September 2008, the company reported.

Diageo’s official site posted the following statement by Chief Executive Paul Walsh:

“As we anticipated, global GDP growth has slowed since the beginning of the financial year. Although these challenging economic trends have affected our business, the strength and diversity of Diageo has delivered a good trading performance in the first quarter.

While we have not seen significant adverse changes in our markets in the first quarter, we will be alert to the impact the recent dislocation in the financial markets is likely to have on trade customer and consumer behaviour during the rest of the financial year. However, based on our current performance we can repeat the guidance we gave in August, for organic operating profit growth for the coming year to be within the range of 7% to 9%.”

In its ...More Info


Belgium: Inbev discloses shareholdings information

InBev disclosed on its official site on October, 16 the information required under article 15, § 1 of the Law of 2 May 2007 regarding the disclosure of important shareholdings in listed companies.

According to the company, information as at October, 15, 2008 was as follows: • Total outstanding capital: €474,826,972.69 • Total number of outstanding ordinary shares: 616,318,297 • Total number of outstanding subscription rights (each right entitles the holder to subscribe to one new ordinary share): 3,596,977 • Total number of outstanding options (each option entitles the holder to purchase from InBev one existing ordinary share): 2,296,001

InBev’s bylaws state that the threshold as from which a shareholding needs to be disclosed, is 3 %.


Philippines: San Miguel Brewery achieves a 23% net income increase in January – September 2008

San Miguel Brewery achieved a net income of 7.0 billion pesos ($146 million) in the first nine months of 2008, up nearly 23 percent compared to last year, Reuters communicated on October, 16.

The revenue during this period climbed 10 percent from a year earlier to 35.2 billion pesos, as sales were mainly driven by effective marketing campaigns, the company said in a statement.

Sales volume rose by 6%, San Migel announced.

“Results were driven by strong execution, and strong consumption coming from increased visibility for flagship brand San Miguel Pale Pilsen during this year’s 120-day Oktoberfest celebration,” the company said. “Ads of key brands, San Mig Light, Gold Eagle, and Red Horse have also stimulated consumption."

San Miguel Brewery declared a P0.15 per share cash dividend, payable this November 12 to its shareholders of record as of October 31, 2008.

The company recently launched two new products — San Miguel Premium All-Malt Beer and a special edition San Miguel Oktoberfest Brew.

"Consumer acceptance has been strong particularly for All-Malt Premium. Plans are currently underway to extend the reach of the product beyond the metropolitan area," the company said.

($1 = 48.08 pesos)


Mexico & United States & Belgium: Grupo Modelo files a notice of arbitration against the merger between InBev and Anheuser-Busch who say the Mexican brewer’s claim has no merit

Grupo Modelo announced on October, 16 that it had filed a notice of arbitration against Anheuser-Busch in connection with the proposed merger between the US brewer and InBev, the Wall Street Journal reported on the same day.

As set forth in the notice of arbitration, the Investment Agreement, which is governed by Mexican law, prohibits Anheuser-Busch from taking actions that would result in a transfer or disposition of its interests in Grupo Modelo and Diblo, Modelo’s subsidiary, to a competitor in the beer business.

In addition, the Investment Agreement prohibits Anheuser-Busch from taking any actions that would result in a transfer or disposition of any portion of its investment in Grupo Modelo and Diblo without first giving the controlling shareholders of Grupo Modelo an opportunity to purchase the shares in Modelo and Diblo being transferred by Anheuser-Busch.

Since the $52 billion deal to sell the brewer of Budweiser and Bud Light to InBev was announced this summer, Grupo Modelo, Mexico's largest brewer, has said that it has consent rights over the deal. The company, which is 50 percent owned by Anheuser-Busch, had been in talks with InBev related to that.

In late July, Grupo Modelo Chief Executive Officer Carlos Fernandez said the company ...More Info


Belgium: Analysts suppose InBev may invite “strategic investors” to help with the Anheuser-Busch acquisition

InBev may bring in “strategic investors” to help pay for the purchase of Anheuser-Busch, Bloomberg cited Merrill Lynch analysts on October, 15.

The Belgian brewer, which postponed the $9.8 billion rights offer until markets stabilized, has arranged so-called equity bridge loan of the same size that must be repaid six months after the takeover is completed. Tumbling markets have pushed InBev shares near a three-year low, experts reported.

The main InBev shareholders, a group of Belgian families and Brazilian investors, declined to take their full entitlement of stock rights, potentially risking their controlling stake, Merrill's Nico Lambrechts said. A “wild card” scenario would see those investors stump up more cash to buy stock, or else find another buyer for their unwanted rights, he said.

“A higher share price at the time of the rights issue reduces the dilution impact,” the analyst wrote in an e-mailed note, without giving any theories on who InBev may target as a “strategic investor.” He rates InBev “buy” and expects a 47-euro stock price, compared with yesterday's close of 33.72.

“The main risk on the deal financing in our view is that InBev would be unable to sell the $7 billion of non-core assets within 12 months,” possibly ...More Info


Barley News

Australia: ABB reports soaring full-year profit after expanding Ukraine and New Zealand barley operations

ABB Grain Ltd., Australia's largest barley exporter, reported on October, 16 that revised full-year profit guidance rose more than six-fold after increasing Ukraine and New Zealand sales.

ABB’s net profit after tax is between A$47 million ($33 million) and A$49 million in the year ended Sept. 30, according to the company’s statement.

The Australian company formed a joint venture with France's Groupe Soufflet to expand into the Ukraine in August and exported its first Ukrainian shipment of feed barley to the Middle East. ABB had forecast profit of as much as A$38 million on May 27.

“The advantage of investing in the Ukraine is that ABB is able to supply its regular customers in the Middle East and Asia with more grain, especially given the recent harvest in Ukraine, the largest in almost two decades,” Managing Director Michael Iwaniw said in the statement.

After the announcement, ABB’s stock jumped 10 percent to A$7.58 at 12:25 p.m. Sydney time on the exchange on October, 17.

The company is due to announce its full-year accounts to the exchange on Nov. 25, it said.


France: Total barley production to amount to 12 mln tonnes in 2008

The 2008 crop of malting barley will be better than last year’s in France, La Depeche published on October, 16.

Fears of retarded harvest turned out to be groundless, experts informed. France’s total barley production is expected to reach 12 mln tonnes, up by 27% from 2007 results, and 18% higher than the average 2003 – 2007 achievements, according to the nation’s SSP statistics service. The 2008 barley crop will also beat the record of 1980.

Barley growers explain their success by increased acreage, exceptionally good average yields, and favourable weather.

Barley planted area and yields enjoyed a significant growth this year. Average yield of malting barley amounted to 68 centners/ha. More precisely put, winter barley yields rose by 19%, production amounted to 8.5 mln tonnes, an increase of 25% compared to 2007.

Spring barley yields increased to 14 centners/ha and production is 3.5 mln tonnes this year (+31%). Yields grew in all the regions of the country, it is reported.

Barley acreage is expanding for the third consecutive year. Barley as well as other cereals benefited from the revocation of compulsory fallows in 2008, which made available additional 384,000 ha. Winter and spring barley shared an 8.65% increase of planted areas. Total ...More Info


EU: Feed barley prices slightly recover, malting barley market still almost motionless

Like the markets of other cereals, the EU feed barley market is rather slack, disoriented by the confused economic situation, La Depeche communicated on October, 16.

Nevertheless, experts note several small one-time shipments in the direction of Rouen. Animal fodder producers have reduced their purchases to the minimum.

Prices for feed barley regained some strength towards weekend, but again lost their positions earlier this week. However, the fall was not as drastic as it was last several weeks.

Malting barley market is forsaken by consumers, experts report. A very limited number of deals has been closed recently. This grim background is pressing down the prices, analysts state.


Canada: CWB recommends Canadian government to raise 2007/08 initial payments for barley

The Canadian Wheat Board has submitted a recommendation to the federal government to raise 2007-08 initial payments, Saskatoon home page posted on October, 14.

According to sources, the CWB is asking for C$33 for feed barley (72 cents a bushel), and C$16 a tonne for malting barley (35 cents a bushel).

It usually takes four to six weeks for the government to approve an initial payment increase.


Hops News

World: Preliminary hops harvest results suggest the supply crisis is coming to an end

Preliminary hops harvest results are very encouraging, the Barth-Haas Group announced earlier this month.

The German hop crop benefited from favourable growing conditions and is harvesting an above average crop, both in yield and alpha, it was reported. This is particularly true for the Hallertau which is likely to witness the largest crop ever as measured in kilograms of alpha. The other growing areas (Elbe-Saale, Tettnang, Spalt) seem to be more in line with long-term average crop results.

The official crop estimate for Germany is 36,841 tonnes (80 mln lbs). Final alpha results will be published by the “Arbeitsgruppe Hopfenanalyse (AHA)” in the middle of October.

After a string of disappointing years the Czech Republic has finally returned a reasonably good crop with yields in the neighbourhood of long-term averages and alphas slightly higher.

Saaz/Saaz did particularly well while Trschitz is a disappointment, experts reported.

Slovakia will have a good crop despite severe storm damage which lowered the overall yield by 15 - 20%.

Poland is in for a normal crop with probably above average alphas. Slovenia also seems to be above average with Aurora in particular appearing to have strong alphas thanks to sufficient moisture during the growing season.

The Group’s estimate of the Chinese ...More Info

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 1.3449 October 17, 2008 
 Crop year   2008   2009 
 Parity   FOB Creil   FOB Creil 
 Position   July 2008   July 2009 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  145.00  195.50  158.00  212.50 
2RS  Prestige  144.00  194.00  157.00  211.50 
2RS  Cellar  143.00  192.50  156.00  210.00 
2RS  Sebastien  142.00  191.00  155.00  208.50 
2RS  Tipple  142.00  191.00  155.00  208.50 
2RS  Henley  142.00  191.00  155.00  208.50 
6RW  Esterel   134.00  180.50  146.00  196.50 

French Feed Barley Prices. Nominal prices
EURO = USD 1.3449 October 17, 2008
Crop year 2008
Parity FOB Creil
Position July 2008
Type EURO USD
Feed Barley 122.00 164.08


Theoretical Malt Prices

EURO = USD 1.3449 October 17, 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  377.50  507.50  408.50  549.50  401.00  539.50  415.50  558.50 
2RS  Prestige  376.50  506.00  407.50  548.00  400.00  537.50  414.00  557.00 
2RS  Cellar  375.00  504.50  406.50  546.50  398.50  536.00  413.00  555.50 
2RS  Sebastien  374.00  502.50  405.00  544.50  397.50  534.50  411.50  553.50 
2RS  Tipple  374.00  502.50  405.00  544.50  397.50  534.50  411.50  553.50 
2RS  Henley  374.00  502.50  405.00  544.50  397.50  534.50  411.50  553.50 
2RS   Average price  375.00  504.50  406.50  546.50  398.50  536.00  413.00  555.50 
6RW  Esterel   363.00  489.50  395.50  531.50  387.50  521.00  402.00  540.50 
Asia Malt 70/30  372.00  500.00  403.00  542.00  395.50  531.50  409.50  550.50 
**  Asia Malt 50/50  369.50  497.00  400.50  539.00  393.00  528.50  407.50  547.50 


EURO = USD 1.3449 October 17, 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  385.50  518.50  416.50  560.50  409.00  550.00  423.00  569.00 
2RS  Prestige  384.00  516.50  415.50  558.50  407.50  548.50  422.00  567.50 
2RS  Cellar  383.00  515.00  414.00  557.00  406.50  546.50  420.50  565.50 
2RS  Sebastien  381.50  513.50  413.00  555.50  405.50  545.00  419.50  564.00 
2RS  Tipple  381.50  513.50  413.00  555.50  405.50  545.00  419.50  564.00 
2RS  Henley  381.50  513.50  413.00  555.50  405.50  545.00  419.50  564.00 
2RS   Average price  383.00  515.00  414.00  557.00  406.50  546.50  420.50  565.50 
6RW  Esterel   369.50  498.50  402.00  540.50  394.00  530.00  408.50  549.00 
Asia Malt 70/30  379.50  510.00  410.50  552.00  402.50  541.50  417.00  560.50 
**  Asia Malt 50/50  377.00  506.50  408.00  548.50  400.50  538.50  414.50  557.50 

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

Table of the Week

First And Provisional Eu Malting Barley Supply And Demand Estimate 2008/2009

(in 1,000 tonnes) Malt Capacity for 2008/2009 Barley Malt Production Barley Demand Spring Malting Barley Supply Winter Malting Barley Supply Net Plus/Minus Total
Northwest             
Belgium  739  725  900  30  -870 
France  1283  1200  1500  2200  1600  +2300 
Germany  2148  2000  2500  1600  100  -800 
Ireland  128  120  150  120  -30 
Netherlands  326  320  400  100  -300 
United Kingdom  1504  1500  1875  1100  1100  +325 
TOTAL Northwest  6128  5865  7325  5150  2800  +625 
Baltic             
Denmark  277  260  325  675  +350 
Finland  172  160  200  225  +25 
Lithuania  82  80  100  75  -25 
Poland  341  300  375  50  50  -275 
Sweden  200  200  250  250 
TOTAL Baltic  1072  1000  1250  1275  50  +75 
Southeast             
Austria  150  150  190  190 
Bulgaria  58  50  65  65 
Czech Republic  545  520  650  900  +250 
Hungary  134  130  165  125  40 
Romania  150  120  150  75  75 
Slovakia  293  250  315  365  +50 
TOTAL Southeast  1330  1220  1535  1720  155  +300 
Mediteranian             
Greece  45  45  60  10  -50 
Italy  74  70  90  30  30  -30 
Portugal  88  80  100  -100 
Spain  497  460  575  675  +100 
TOTAL Mediteranian  704  655  825  705  40  -80 
NET TOTAL  9234  8740  10935  8850  3005  +920 
Graph of the Week



These Days in Business History
October 16
1922 Disney Co founded
1923 John Harwood patents self-winding watch (Switzerland)
1985 Intel introduces 32-bit 80386 microcomputer chip

October 17
1977 Mother Teresa of India, awarded Nobel Peace Prize
1987 Phillip Morris announces $11 Billion tender offer for Kraft
1929 Radio Corporation of America is formed by General Electric Co. lawyer Owen D. Young

October 18
1878 Edison makes electricity available for household usage
1972 American Congress authorizes bi-centennial quarter, half-dollar & dollar coin
1973 Nobel Prize for economy awarded to Wassily Leontief

October 19
1819 Joseph C Juglar is born, French physician/economist, Crises Commercial
1987 Wall Street takes its worst plunge of the modern era, as the Dow loses 508
points, or 22.6% (the worst daily loss on record), to close at 1738.74.
1988 Friedrich Weinreb, Polish/Neth theologist/economist, dies at 77
Agenda