Anheuser-Busch InBev has extended the deadline for bids in the sale of its Central and Eastern European operations to late July, Dow Jones Newswires cited on July, 8 a person familiar with the situation.

Binding bids were originally due mid-July with the brewing giant wanting a quick sale possibly by the end of the month, people said. However the complexity of the deal which involves operations across seven regions - Bulgaria, Romania, Hungary, Czech Republic, Croatia, Serbia and Montenegro - and tricky financing markets have pushed the tight timetable back, people said.

AB InBev initiated the auction, which is being run by Barclays PLC, after it received an unsolicited approach from CVC Capital Partners. The brewer wants to get what the company hopes is a "fair" and "best" price, one person said.

Analysts said that a sales price of EUR2 billion just for AB InBev's Central European business, excluding Russia and Ukraine, would be reasonable. AB InBev sells about 15 million hectolitres of beer annually across the seven countries.

Other potential buyout bidders include Kohlberg Kravis Roberts and TPG. Cinven Group Limited is also interested.

Among strategic buyers Efes Breweries International N.V. has expressed interest, people said, and SABMiller PLC may also be interested but ...More Info

SABMiller Plc, the world’s second- biggest brewer, has cut its forecast for European sales growth as the global recession weighs on consumer demand and markets from Russia to Hungary slow, Bloomberg communicated on July, 9.

European beer sales by volume will increase 2 to 4 percent in the years through 2013, rather than the “consensus expectations” of 4 to 6 percent growth, SABMiller executives said at an investor briefing in London, where the brewer is based. Per capita beer consumption in Eastern Europe is moderating, while declining in Western Europe, they said.

The brewer said it plans to increase sales in Russia and mature European markets by pushing more-profitable premium brands including Grolsch and Peroni. The company aims to make manufacturing more efficient in Poland, Romania and the Czech Republic, while cutting costs in the Grolsch operations, said Alan Clark, the brewer’s managing director for Europe.

The amount of beer the company sold in Europe in the year ended in March was little changed as consumers cut back spending. The lack of volume growth meant the European operations reported a 5 percent decline in profit because of higher costs and currency effects.

The beermaker's European region earns 22 percent of group profits with number ...More Info

Kirin Holdings Co. Ltd. regained the top spot in the domestic beer market for the first time in three years, Dow Jones cited beer shipment data for the January-June period released on July, 10 by top Japanese brewers.

Kirin's beer shipments during the first half grew 2.5% on year to 81.46 million cases, giving it a market share of 37.5%, ahead of archrival Asahi Breweries Ltd.'s 36.9% market share.

The gain came amid only moderate growth in overall beer shipments for Japan's five top brewers during the six-month period of 0.2% on year to 217.24 million cases.

A Kirin spokeswoman attributed the strength partly to the success of "Kirin Nodogoshi," a low-priced beer-flavored product that attracted increasing attention from yen-pinching consumers amid worries about income and employment. Nodogoshi is one of several competing products in a new category of beer that Japanese brewers created to get around tax rules. Dubbed "the third beer," Nodogoshi and rival products take advantage of lower taxes on beer made from non-malt ingredients.

Kirin also cited brisk sales for "Kirin Ichiban" after the brand's renewal earlier this year.

Suntory Ltd. maintained third spot with a market share of 12.7%, followed by Sapporo Holdings Ltd. with 12.1%.

Shipments refer ...More Info

Chilean brewer Compania Cervecerias Unidas SA (CCU) reported on July, 7 its preliminary second quarter consolidated volumes.

The company’s total sales volume increased by 4.3% on the year to 3.25 mln hl.

In the second quarter, CCU’s beer sales in Chile grew 3.8% to 947,174 hl, but fell 1.1% in the first half of 2009 to 2.45 mln hl. Beer volumes in Argentina (excluding exports to Chile) dropped by 1% to 753,580 hl in the second quarter, but jumped 16% in the first half to 1.87 mln hl.

CCU plans to release its consolidated second quarter results by the first week of August.

CCU is a diversified beverage company operating principally in Chile and Argentina. CCU is the largest Chilean brewer, the second-largest Argentine brewer, the third-largest Chilean soft drink producer, the second-largest Chilean wine producer, the largest Chilean mineral water producer, one of the largest pisco producers and also participates in the rum and confectionery industries in Chile. The Company has licensing agreements with Heineken Brouwerijen B.V., Anheuser-Busch Incorporated, PepsiCo Inc., Paulaner Brauerei AG, Schweppes Holdings Limited, Guinness brewing Worldwide Limited and Société des Produits Nestlé S.A.

Brewers Carlsberg, Heineken and Anheuser-Busch InBev lead the field of European blue chip losers after a report that Russia may triple its beer tax, Reuters communicated on July, 10.

Carlsberg stock is 2.0 percent weaker at 322.00 crowns, Heineken is off 2.3 percent at 26.00 euros and AB InBev is 1 percent lower at 26.66 euros. The three are the largest players in the Russian market. The DJ Stoxx food and beverage index is 0.3 percent lower.

According to the Vedomosti business daily, beer tax on the same sized bottle could triple to 3.51 roubles ($0.11). A beer would typically cost between 15 and 50 roubles.

"This would be especially bad for Carlsberg, the biggest brewer there," said Ton van Ooijen of Kepler Capital Market, who has just initiated the stock with a 'buy' recommendation.

But Anthony Bucalo, analyst at Credit Suisse, said the share price move looked to be an overreaction to the reported tax rise.

"On a practical basis, it's a problem only at the margins. Tax in Russia is relatively low, so [drinks companies] could pass the cost on to consumers," he said.

But he added that the impact was likely to be greater for mainstream brands.

Shares in SABMiller are flat. The UK-listed ...More Info

Japan’s Asahi Breweries reported its June 2009 sales on July, 9.

The company said its total beer sales increased by 3.9 per cent to 221,558 kilolitres in June 2009 as compared to the same period in 2008.

The brewer’s domestic sales of ordinary beer increased by 0.2% to 151,926 kl. Sales of new genre (malt-based) beer added 26.5% (to 36,742 kl). Happoshu (low malt beer) saw a 1% rise in sales to 32,889 kl as compared to June 2008.

Asahi’s January – June 2009 total sales declined by 1.3% to 1,013,953 kl (as compared to 1,027,640 kl sold in the same period in 2008). A drop was registered in the sales of ordinary (- 5.8% to 671,117 kl) and Happoshu (low-malt) beer (- 3.7% to 168,016 kl). On the contrary, sales of new genre malt-based beer surged by 24% in the first half of this year to reach 174,820 kl.

As for Asahi’s sales by brand, the best results were achieved by Clear Asahi: + 27.3% in June, and + 84.9% in January – June. Sales of Super Dry fell by 1.4% in June, and by 6% over the first half of this year. Sales of Jukusen fell both in June and in the ...More Info

France is expected to harvest an excellent barley crop of about 12 mln tonnes this year, FranceAgriMer communicated its initial estimates on July, 8.

Last year’s barley crop totalled more than 12.3 mln tonnes.

French barley acreage is estimated at 1.8 mln ha, plus 2% as compared to the area planted to barley last year. Winter barley acreage was increased, whereas spring barley acreage was reduced by about 0.2%.

Tests of the harvested winter barley show so far a very good quality, low protein and good calibration.

Canadian grain-handling company Viterra Inc said its acquisition of ABB Grains Ltd remains on track, a day after the Australian company cut its profit view hurt by lower demand, Reuters reported on July, 8.

"Our offer was not based on one year of earnings, but rather the long-term cycle of earnings beginning in 2010 and beyond. The strategic rationale remains compelling," Viterra Chief Executive Mayo Schmidt said in a statement.

Crop prospects in South Australia have been supported by good rainfall and growing conditions and Viterra remains committed to its acquisition of ABB, the company said.

ABB had lowered its annual profit outlook, citing slower demand for malt by Asian customers and weaker sales of fertilizer and agriculture chemicals.

In April, Viterra agreed to buy the ABB in a A$1.6 billion stock-and-cash deal, to give the company better access to Asian markets.

Viterra also said it expects average grain marketings in the 2009/2010 crop year based on current crop conditions and a significant carryout of production from 2008/2009.

C. Zufall1, and Th. Tyrell

Abstract:
J. Inst. Brew. 114(2), 134–142, 2008 In this study, the importance of iron and copper ions and their radical formation via the respective Fenton and Haber-Weiss reactions was confirmed. Of the other heavy metals present in the brewing process in relevant concentrations, the impact of manganese ions on beer flavour stability has been elucidated. In contrast to iron and copper, manganese ions are not removed from wort or beer to any great extent during the process. Additionally, manganese shows a similar radical-promoting effect to that seen with iron and copper. Its reactivity, and typically higher concentration than the other two metals in beer, appear to make manganese an especially potent pro-oxidant in beer. The results of the investigation clearly indicate that there are other heavy metals influencing the stale flavour characteristics of beer, in addition to the well-known metals, iron and copper. In contrast to the aforementioned ions, manganese does not enter the product by being leached out of a tank or from piping materials, but rather comes from the cereals employed in brewing. This finding, concerning the importance of manganese as a redox system in beer staling, can serve as a basis for a different approach in the choice of raw materials. Key words: chemiluminescence, copper, flavour stability, heavy metal ions, iron, manganese, radical reactions. Load full article, 9 pages, 0.98 MB , PDF file