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E-Malt.com Newsletter 38b
September 17 - September 20, 2009
Open!
Click here to get full size Newsletter


Quote of the week

"There is only one thing that makes a dream impossible to achieve: the fear of failure"
Paulo Coelho, 21-st century, Brazilian writer
E-Malt.com recommends:


Currency Rates
Base Currency: Euro, EUR
on 18-September-2009

1 EUR = 1.4728 USD
1 EUR = 0.8928 GBP
1 EUR = 1.5683 CAD
1 EUR = 1.6868 AUD
1 EUR = 134.119 JPY
1 EUR = 2.6599 BRL
1 EUR = 44.725 RUB
1 EUR = 10.0686 CNY
Base Currency: US Dollar
on 18-September-2009

1 USD = 0.679 EUR
1 USD = 0.6062 GBP
1 USD = 1.0649 CAD
1 USD = 1.1453 AUD
1 USD = 91.0645 JPY
1 USD = 1.8061 BRL
1 USD = 30.3683 RUB
1 USD = 6.8366 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

September 18, 2009

Type Crop 2008 Crop 2009
2rs Barley nq   EUR96.0-100.0
6rw Barley nq   EUR93.0-97.0 1.04%
2rs Malt EUR311.0-315.0 0.32% EUR283.5-287.5 0.35%
6rw Malt EUR305.5-309.5 0.32% EUR279.0-283.0 0.71%
Feed Barley nq nq EUR88.0-92.0 1.09%

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

Vietnam: Carlsberg and Vietnamese brewer Habeco sign agreement to increase partnership ...Click here
UK: Greene King plans to sell parts of the Hardys & Hansons Kimberley Brewery site. ...Click here
USA: Anheuser-Busch InBev to seek international expansion after paying off debt ...Click here
Russia: Tinkov may sell its restaurant chain to Mint Capital ...Click here
Canada: Brick Brewing says Anheuser-Busch, Inc. and Labatt amend lawsuit ...Click here
Japan: Lion Nathan overwhelmingly shareholders approved $3 bln takeover by Kirin ...Click here
Romania: Heineken shuts down malt production, leaving 61 workers without jobs ...Click here
USA: Malting barley requires special care when drying ...Click here


More News


UK: Greene King's Belhaven to close bottling plant in Dunbar with loss of 20 jobs ...More Info
Germany & China: Drinktec and China Brew & China Beverage sign a cooperation agreement ...More Info
USA: NYSE listing underscores Anheuser-Busch InBev’s U.S. focus ...More Info
Namibia: Brewery expects higher earnings ...More Info
USA: Anheuser-Busch retail program helps fight underage drinking ...More Info
Greece: The CEO of Mythos Brewery has left Mythos Brewery effective immediately ...More Info
South Korea: Jinro delays IPO, sets new pricing range ...More Info
UK: New advertising campaign for Beck’s Blue as the leading alcohol free brand ...More Info
USA: Anhueser-Busch InBev says it will stop selling fan cans in Columbia area ...More Info
Go to our news database with more than 15797 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

Vietnam: Carlsberg and Vietnamese brewer Habeco sign agreement to increase partnership

Danish brewing giant Carlsberg and Vietnamese brewery Habeco plan to increase their successful partnership in the fast growing and prosperous Vietnamese beer market, Carlsberg posted in a statement on September 17th. In the presence of the Vietnamese Prime Minister Nguyen Tan Dung Carlsberg and Habeco today signed a so called Memorandum of Understanding which is planned to increase Carlsberg’s ownership in Habeco from 16.07% up to 30%.

Habeco and Carlsberg also agreed on accelerating the strategic cooperation plan on key business areas.

The agreement was signed by General Director Nguyen Van Viet, Habeco, and President & CEO Jørgen Buhl Rasmussen, Carlsberg.

The signing ceremony took place at Carlsberg’s Headquarters in Copenhagen.

Habeco is market leader in the northern Vietnam where Carlsberg is present through its brewery joint ventures in Hanoi and Halong. The increased partnership will provide opportunities for both Habeco and Carlsberg to further jointly strengthen their market positions in northern Vietnam but also in central Vietnam where Carlsberg is market leader through its brewery joint venture in Hué. Carlsberg and Habeco are already partners in southern Vietnam where a new brewery is being constructed.

"Habeco’s choice of Carlsberg as strategic partner and the plan to increase the partnership is a major ...More Info


UK: Greene King plans to sell parts of the Hardys & Hansons Kimberley Brewery site.

Part of the former Kimberley Brewery has been put up for sale, three years after its closure, Eastwood & Kimberley Advertiser posted on September 17th.

The Hardy and Hansons brewery, in Hardy Street, closed in 2006, when it was sold in a multi-million pound deal to Greene King brewery.

Borough councillor Richard Robinson and Broxtowe MP Nick Palmer campaigned for the site to be sold off in partsADVERTISEMENTto ensure historic buildings were not bulldozed.

Cllr Robinson said this week that he had now been informed that parts of the site had been put up for sale.

He said: "A selling agent for Greene King is to advertise parts of the brewery for sale individually by private treaty."

The parts up for sale include former garage buildings, offices and stores at the junction of Brewery Street and Hardy Street. He added: "The main brewery site is not being offered for sale, neither are any of the houses.

"These will continue to be owned by Greene King, along with the bridge over Hardy Street and the offices either side."

A total of 80 jobs were lost when Greene King bought the site, and chose to end brewing and distribution there. Beer had been brewed in the town since ...More Info


USA: Anheuser-Busch InBev to seek international expansion after paying off debt

Anheuser-Busch InBev CEO Carlos Brito said this week that there will be "much more" room for the company to expand internationally, including acquisitions, after having paid off most of its debts, BizDaily posted on September 18th.

The world's largest brewer is "focused on deleveraging over the next year or two" although "this does not mean" we cannot evaluate "opportunities," Brito said in a telephone interview in New York. AB-InBev will consider purchases carefully, said Brito, who declined to mention specific regions.

Since the U$52 billion merger that created the company in November, the AB-InBev has cut staff, selected marketing budgets of brands and sold assets to help pay their debts. In the past ten months, the company has completed nearly 70% of the U$7 billion plan to sell operations." In the Americas, we still have a lot to do" in terms of expansion, he said. "China is a big venture."

The company will use American Depositary Receipts (ADRs) on a secondary New York Stock Exchange listing. Papers began trading yesterday under the "BUD" ticker symbol. That makes its shares more accessible to investors in the United States, said the CEO.

"Anheuser-Busch InBev shifted its focus to become a company of the Americas and ...More Info


Russia: Tinkov may sell its restaurant chain to Mint Capital

The majority owner of Russian casual dining chain Tinkoff Restaurants has announced his decision to sell his share in the company after 11 years of operation. Oleg Tinkov made the announcement through his Twitter account, telling his audience that he had grown bored of the investment and asking potential buyers to email their offers to his LiveJournal account. The two companies have signed a US$10 million direct equity investment agreement. Though it's not clear how much Tinkov's share is worth, he claims to own 70% of the company after selling some share to Mint Capital in 2008. The chain currently operates nine locations throughout Russia, down from thirteen a year ago.

The Mint Capital investment was designed to aid the expansion of Tinkoff Restaurants with a goal of 50 locations by 2011 but tough economic times have scuttled that plan while also forcing the close of four locations. Analysts expect any buyer who comes along to be a foreign investor rather than one from Russia.

“Now we have everything for aggressive regional growth to become a pan-Russian casual dining restaurant chain. Mint Capital’s partners have already provided good governance and strategic support, and it will be a pleasure to have them on ...More Info


Canada: Brick Brewing says Anheuser-Busch, Inc. and Labatt amend lawsuit

Brick Brewing Co. Limited (TSX: BRB) announced on September 17th it has received an Amended Statement of Claim from brewing giant Anheuser-Busch, Incorporated ("AB") and related Canadian company, Labatt Brewing Company ("Labatt") in response to Brick's Motion to Strike portions of the claim. Most significantly, the revised claim removes AB's and Labatt's claims and assertions that Brick has depreciated goodwill in AB's and Labatt's alleged trade-marks, and also alters the claim of punitive damages. Brick Brewing continues to wage an aggressive information campaign to fend off the suit. Brick will file a Statement of Defence with Canada's Federal Court by September 30th.

"Bullies often change their tactics when the little guys fight back," said George Croft, President and CEO of Brick Brewing. "Such a drastic change in their suit calls into question the legitimacy of the claim and the carelessness taken when originally drafted and we believe this is a common pattern of conduct used in bull-dozing all competition regardless of the specific merits of the brand in question."

Brazil's antitrust regulator recently imposed a record fine of US$176 million on AB InBev's Brazilian subsidiary, AmBev for anti-competitive practices against small competitors. Brick Brewing, which launched its Red Baron Lime beer in ...More Info


Japan: Lion Nathan overwhelmingly shareholders approved $3 bln takeover by Kirin

Lion Nathan Limited (Sydney, Australia; CEO Rob Murray; hereafter, "Lion Nathan"), a 46.13%1 owned and affiliated company of Kirin Holdings Company, Limited (President and CEO Kazuyasu Kato; hereafter, "Kirin") announced on September 17th that its non-Kirin shareholders voted in favor of the scheme of arrangement ("Scheme") under which Kirin has offered to acquire the remaining issued shares in Lion Nathan that it does not already own.

1. Based on the number of issued shares in Lion Nathan as at the date of this announcement. Lion Nathan will apply to the Federal Court of Australia for approval of the Scheme at a hearing scheduled for Wednesday, October 7, 2009. Subject to Court approval, implementation of the Scheme is scheduled to occur on October 21, 2009. Lion Nathan will be delisted upon implementation of the Scheme.

Since its initial investment in Lion Nathan in April 1998, Kirin and Lion Nathan have worked together in promoting Kirin's integrated beverages strategy in Oceania. The consolidation of Lion Nathan as a wholly owned subsidiary will further drive that process and also support Kirin's objective of strengthening its offshore earnings base.

Outline of the Scheme Meeting

1. Date: September 17, 2009 2. Agenda: To consider the Scheme under which ...More Info


Malt News

Romania: Heineken shuts down malt production, leaving 61 workers without jobs

Heineken Romania, one of the largest brewers in Romania said it would cast off barley-malting at its breweries in Romania, leaving 61 workers without jobs, in an effort to improve efficiency, Wall-Street.ro communicated on September 18th. The decision will take effect from October 19.

The company produces malt at its breweries in Hateg, Craiova, and Miercurea Ciuc. The decision to halt the malt production was made after a thorough assessment of its financial situation which found that barley production and malting requires high costs, due to high energy and water consumption.

Considering the existent standards, the current malting plant’s capacity is relatively low. Thus, the company will increase imports of malted barley from suppliers.

“Our objective is to run operations in Romania on a long term and in a lucrative and responsible manner. We are here to stay, to bring excellent quality to our consumers. This is why we permanently seek new solutions to improve quality and direct investments more efficiently. The shift to malted barley providers with cutting-edge production equipment will bring us closer to achieving this objective. Furthermore, it will allow us to focus on our basic operations, the art of brewing for which Heineken is famous both in Romania ...More Info


Barley News

USA: Malting barley requires special care when drying

Malting barley germination will be lost if adequate airflow is not provided to barley being dried by natural air or low-temperature drying so that it is dried within the allowable storage time, according to Ken Hellevang, North Dakota State University Extension Service agricultural engineer and grain-drying expert cited by Farm & Ranch Guide.

Minimum recommended airflow rates and drying times to dry the barley within the allowable storage time are 1.25 cubic feet per minute per bushel (cfm/bu) to dry 18 percent moisture barley in about 20 days and 0.75 cfm/bu to dry up to 17 percent moisture barley in about 31 days, based on typical August weather conditions.

“Drying occurs in a zone that moves from the bottom of the bin to the top if the air is pushed up through the barley,” Hellevang says. “Grain at the top will stay near the initial moisture content until the drying zone reaches the top of the grain, so adequate airflow to dry the barley within its allowable storage time is critical.”

Both the time required to complete drying and the allowable storage time will be longer at cooler temperatures because the cooler air holds less moisture. Drying grain at 60 degrees will take ...More Info

Scientific Digest

Improving Drinkability Using Multivariate Analysis

Hans Christian ALLER, Jeppe KIELDSEN and Carsten Wijngaard JORGENSEN

This article has been published courtesy of the European Brewery Convention (EBC). Abstract:
Experience shows that in day-to-day brewery operation, improvements in fresh flavour and flavour stability are often the result of several minor process adjustments. Due to the large number of variables involved in producing beer it can be difficult to demonstrate the influence of individual adjustments in full-scale production, and it can be difficult to conclude what are the most relevant factors that cause variation in beer quality. A powerful method to overcome this problem is to use Multivariate Statistical Analysis (MVA) to analyse data with the purpose of taking qualified decisions regarding modifications in process and raw material specifications. In the method described, data from full scale trial and control beers are evaluated by multivariate analysis with the aim of finding the key process changes influencing flavour stability. Our results show an improvement in fresh and aged beer flavour and a reduction in concentration of several staling descriptors e.g. Trans-2-Nonenal (T2N). The outcome of such flavour improvement projects using MVA will to our experience enhance the potential for a stronger position in the market due to improved flavour stability and thereby drinkability. We propose that the method described is used as an active tool to support marketing in promoting premium brands. The following material is based on data from 9 flavour improvement projects carried out by ALECTIA Brew over the past 6 years. Load full article from site www.cerevisia.eu

Barley Prices
EURO = USD 1.4728 September 18, 2009  
 Crop year   2008   2009 
 Parity   FOB Creil   FOB Creil 
 Position   July 2008   July 2009 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  nq nq 100.00  147.50 
2RS  Prestige  nq nq 99.00  146.00 
2RS  Cellar  nq nq 98.00  144.50 
2RS  Sebastien  nq nq 97.00  143.00 
2RS  Tipple  nq nq 97.00  143.00 
2RS  Henley  nq nq 97.00  143.00 
6RW  Esterel   nq nq 95.00  140.00 

French Feed Barley Prices. Nominal prices
EURO = USD 1.4728 September 18,2009
Crop year 2009
Parity FOB Creil
Position July 2009
Type EURO USD
Feed Barley 90 132.55


Theoretical Malt Prices

EURO = USD 1.4728 September 18, 2009 
Crop year  2008 
Parity  FOB Antwerp 
Position  Sept 2009 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  315.50  464.50  347.00  510.50  339.00  499.50  353.50  520.50 
2RS  Prestige  314.50  463.00  345.50  509.00  338.00  497.50  352.00  518.50 
2RS  Cellar  313.00  461.00  344.50  507.00  336.50  495.50  351.00  516.50 
2RS  Sebastien  312.00  459.50  343.00  505.50  335.50  494.00  349.50  515.00 
2RS  Tipple  312.00  459.50  343.00  505.50  335.50  494.00  349.50  515.00 
2RS  Henley  312.00  459.50  343.00  505.50  335.50  494.00  349.50  515.00 
2RS   Average price  313.00  461.00  344.50  507.00  336.50  495.50  351.00  516.50 
6RW  Esterel   307.50  454.00  339.50  500.00  331.50  488.50  346.00  509.50 
Asia Malt 70/30  311.50  459.00  343.00  505.00  335.00  493.50  349.50  514.50 
**  Asia Malt 50/50  310.50  457.50  342.00  503.50  334.50  492.00  348.50  513.00 


  EURO = USD 1.4728 September 18, 2009 
Crop year  2009 
Parity  FOB Antwerp 
Position  Oct 2009 - Sept 2010 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  288.00  424.00  319.50  470.00  311.50  459.00  326.00  479.50 
2RS  Prestige  287.00  422.50  318.00  468.50  310.50  457.00  324.50  478.00 
2RS  Cellar  285.50  420.50  317.00  466.50  309.00  455.00  323.50  476.00 
2RS  Sebastien  284.50  418.50  315.50  464.50  308.00  453.50  322.00  474.50 
2RS  Tipple  284.50  418.50  315.50  464.50  308.00  453.50  322.00  474.50 
2RS  Henley  284.50  418.50  315.50  464.50  308.00  453.50  322.00  474.50 
2RS   Average price  285.50  420.50  317.00  466.50  309.00  455.00  323.50  476.00 
6RW  Esterel   281.00  415.00  313.00  461.00  305.50  449.50  319.50  470.50 
Asia Malt 70/30  284.50  419.00  315.50  465.00  308.00  453.50  322.50  474.50 
**  Asia Malt 50/50  283.50  418.00  315.00  463.50  307.50  452.50  321.50  473.50 

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

EU Malt Export Licence Fixations

(in tonnes) 2006-2007 2007-2008 2008-2009
France 460,829 357,498 323,305
Germany 239,633 352,420 241,245
Belgium 531,606 578,586 688,350
Bulgaria 1,270 2,860 804
U.K. 114,156 106,867 127,324
Finland 70,783 60,217 46,540
Denmark 72,374 99,380 54,942
Sweden 90,550 96,700 84,880
Netherlands 78,754 90,756 99,057
Ireland 2,250 - -
Italy 181 3,148 2,773
Austria 22,743 9,085 6,511
Spain - - 19,058
Romania - 500 -
Portugal 992 476 1,028
Czech Republic 41,769 25,203 21,635
Poland - 2,025 1,568
Hungary 5,474 2,638 13,099
Slovakia 23,157 16,645 16,796
Lithuania 172 1,855 1,038
Latvia 2,127 1,485 347
Total EU 2,180,986 1,756,691 1,750,797

Total Roasted malt, tonnes
July 2008 - June 2009 39,945
Total 2006 - 2007 30,084
Total 2007 - 2008 28,177
Note: Eurostat statistics of export shipments
Graph of the Week



These Days in Business History
September 17
642 Arabs conquer Alexandria, library destroyed
2000 The International Monetary Fund issues its World Economic Outlook report, forecasting that "growth is projected to increase in all major regions of the world, led by the continued strength of the U.S. economy, the robust upswing in Europe, the consolidation of the recovery in Asia and the rebound from last year's slowdown in emerging markets." Just weeks later, most regions of the world are tilting toward recession.

18 September
1842 1st edition of Pittsburgh Post-Gazette, published
1851 The first edition of The New York Daily Times, which later became The New York Times, was published.
1955: The Ford Motor Company produced its 2,000,000th V-8 engine on this day, 23 years after the first Ford V-8 was manufactured.

19 September
1849 1st commercial laundry established, in Oaklan, California
1854 Henry Meyer patents sleeping rail car
1876 1st carpet sweeper patented (Melville Bissell of Grand Rapids, Mich)
1887 Dr. Graham Edgar, developer of the octane rating system, was born in Fayetteville, Arkansas, on this day.
1888 World's 1st beauty contest (Spa Belgium)

20 September
1519 Portuguese navigator Ferdinand Magellan sets sail from Spain in an effort to find a western sea route to the rich Spice Islands of Indonesia.
1839 1st railroad in Netherland opens (Amsterdam-Haarlem)
1877 Chase National Bank opens in NYC (later merges into Chase Manhattan)
Agenda