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E-Malt.com Newsletter 44a
October 26 - October 28, 2009
Open!
Click here to get full size Newsletter


Quote of the week

"Life is all about timing... the unreachable becomes reachable, the unavailable become available, the unattainable... attainable. Have the patience, wait it out. It's all about timing."
Stacey Charter
Currency Rates
Base Currency: Euro, EUR
on 28-October-2009

1 EUR = 1.4857 USD
1 EUR = 0.9087 GBP
1 EUR = 1.5864 CAD
1 EUR = 1.6201 AUD
1 EUR = 136.748 JPY
1 EUR = 2.5804 BRL
1 EUR = 43.378 RUB
1 EUR = 10.1627 CNY
Base Currency: US Dollar
on 28-October-2009

1 USD = 0.6731 EUR
1 USD = 0.6117 GBP
1 USD = 1.0678 CAD
1 USD = 1.0905 AUD
1 USD = 92.0429 JPY
1 USD = 1.7368 BRL
1 USD = 29.1966 RUB
1 USD = 6.8402 CNY
Currency Rates Chart

Equities of the Largest Breweries

Equities of the Largest Breweries

Average Market Prices Change trend

October 28, 2009

Type Crop 2009 Crop 2010
2rs Barley EUR97.0-101.0 1.02% EUR116.0-120.0 0.84%
6rw Barley EUR94.0-98.0 EUR109.0-113.0 1.83%
2rs Malt EUR282.0-286.0 0.53% EUR305.5-309.5 0.32%
6rw Malt EUR277.5-281.5 EUR295.5-299.5 0.85%
Feed Barley EUR94.0-98.0 nq 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

The Netherlands: Heineken raises 2009 profit outlook encouraged by ‘positive development of financial performance in the third quarter’ ...Click here
Mexico: FEMSA’s beer operations increases total revenues by 13.1% in Q3 2009 ...Click here
Russia: Unheard-of beer excises may force Carlsberg to shut breweries - CEO ...Click here
India: United Breweries reports an over two-fold net profit growth in Q2 ended September 30 ...Click here
Africa: SABMiller spending $370 mln on capex in Africa ...Click here
Mexico: Grupo Modelo’s total volume sold increases by 3.2% in the third quarter of this year ...Click here
Russia: January – September beer production declines by 7.9% ...Click here
The Netherlands: Heineken looking at all markets for expansion - CFO ...Click here
Canada: Canadian Malting Barley Technical Centre releases list of malting barley varieties recommended for 2010-11 ...Click here


More News


The Netherlands & Mexico: Acquiring FEMSA beer is Heineken’s last chance to diversify from low-growth Europe - analysts ...More Info
China: Beijing Yanjing Brewery sees net profit grow by 27% in the third quarter of this year ...More Info
Japan: Kirin reportedly planning to close two beer plants ...More Info
Malaysia & Singapore: Carlsberg Malaysia optimistic on acquisition of Carlsberg Singapore ...More Info
Kazakhstan: Beer output down 4.1% yoy in the first nine months of this year ...More Info
Ukraine: Barley sales increase in January – September this year ...More Info
Japan: Kirin/Suntory merger may be delayed by regulators - report ...More Info
Tunisia: Brewer SFBT reports better exports than domestic beer sales in January – September 2009 ...More Info
Latvia: New Latvian-American beer to hit shelves soon ...More Info
Mexico: Senate committees approve higher taxes on beer ...More Info
United States: Tibetan beer sales to increase in the second half of this year ...More Info
Russia & Chile: Baltika becomes the first Russian brewer to ship production to Chile ...More Info
Japan: Kirin taking measures for Guinness to surge in smaller restaurants ...More Info
Australia: Lion Nathan expands James Boag’s beer line ...More Info
Ukraine & Belarus: Ukrainian brewer Obolon to set up an office in Belarus ...More Info
Go to our news database with more than 16026 articles.
Today with the possibility to be translated in 7 different languages!
DE FR SP IT PT RU CN

Brewery News

The Netherlands: Heineken raises 2009 profit outlook encouraged by ‘positive development of financial performance in the third quarter’

Heineken N.V. issued on October, 28 its trading update for the third quarter of 2009.

Organic EBIT (beia) grew in the mid teens thanks to strong pricing, improved sales mix and aggressive cost cutting, offsetting lower volume due to the global recession, the world’s third-largest brewer said.

Revenue totalled EUR4,070 million, down 0.4% organically. The positive price and mix effect (+2.6%), almost fully compensated for the lower volume effect (-3.0%). The adverse effect of currencies on revenue amounted to 4.9%.

EBIT (beia) grew organically in the mid teens in the third quarter, driven by improved pricing and sales mix and cost savings, despite lower volume. Reduction in personnel, energy and water expenses and efficiencies in marketing were key drivers of the performance. First time consolidation had a limited but positive contribution, whilst weaker currencies affected EBIT by EUR36 million.

In the third quarter, further cost reductions were achieved through the closure of breweries in France and Spain. Heineken announced plans to close a further four breweries (2 in Russia, 1 in UK and 1 in Finland) and 3 malting plants in Romania, generating future savings. Lower costs were also realised in the European wholesale business.

Exceptional items in the quarter amounted ...More Info


Mexico: FEMSA’s beer operations increases total revenues by 13.1% in Q3 2009

Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) announced on October, 28 its operational and financial results for the third quarter of 2009.

The company’s brewing division, FEMSA Cerveza saw its Mexico sales volume increase 1.5% to 6.859 million hectolitres in 3Q09, in the context of a still challenging economic environment, particularly in its key northern markets.

FEMSA’s Tecate brand family and Indio once again delivered strong growth. Furthermore, Mexico price per hectoliter showed robust growth of 6.4% over 3Q08 to Ps. 1,156.7 in 3Q09, resulting from price increases implemented during the second quarter of 2009, in addition to the increases carried out late in the third quarter of 2008.

Mexico beer revenues were up 8.0% over 3Q08 mainly driven by stable volumes and healthy prices.

For the first nine months of 2009, Mexico sales volume decreased 2.6% to 19.754 million hectolitres and price per hectolitre grew 7.6% over the comparable period in 2008.

Brazil sales volume decreased 3.9% in 3Q09, against a tough comparable figure of 8.0% volume growth in 3Q08, to 2.278 million hectolitres, while Brazil price per hectolitre calculated in Mexican pesos increased 15.3% to Ps. 744.2 compared to the same period in 2008, largely driven by the strength of the Brazilian ...More Info


Russia: Unheard-of beer excises may force Carlsberg to shut breweries - CEO

Russia's plans to triple duties on beer could cost the country 100,000 jobs and may prompt Carlsberg to shut factories, chief executive of the Danish brewer was quoted as saying by Vedomosti on October, 27.

Russia plans to triple the excise duty on beer from the current 3 roubles, to bring in an extra 65 billion roubles ($2.25 billion) of revenues next year to plug the budget deficit of the recession-hit economy.

"By our estimates, if the current proposal to increase excise duties is approved - and we sincerely hope that will not happen - around 100,000 people could end up out of work," Carlsberg's Joergen Rasmussen said.

The world's fourth-biggest brewer owns Russia's Baltika and earns nearly half its profits from Russia where it is by far the largest brewer with some 40 percent of the market.

Rasmussen said the fall in overall beer sales in Russia would be "significant", but declined to give an estimate.

"If the proposal is passed we may be forced to close factories," he said.

Carlsberg operates on many markets and the average tax increase usually amounts to 5-10%, sometimes 20% or 30%, but 200% is something extraordinary, he added.

In addition to the tax hikes, Russia's industries and trade ministry ...More Info


India: United Breweries reports an over two-fold net profit growth in Q2 ended September 30

India’s No. 1 brewer United Breweries Ltd reported on October, 27 an over two-fold growth in net profit at Rs 11.71 crore during the second quarter ended September 30.

The company’s sales increased 12.6% to Rs412.25 crore.

In its annual report for 2008-09, UBL, which sells the Kingfisher beer and commands at least a 50% market share, has said the Indian beer market would grow at 11% for the next five years.

Its quarterly profit was buttressed by a 42% rise in other income to Rs15.54 crore, the company said in a statement to the Bombay Stock Exchange (BSE) without specifying details.

The higher profits were possible despite a 46% increase in the cost of raw materials to Rs70.31 crore, which led to a 12.7% step up in the company’s total expenditure to Rs396.07 crore.

Interest charges rose 38.4% to Rs15.92 crore.

United Breweries does not own any brewing facility in Tamil Nadu, which is one of the major markets in India contributing about 18% of the company’s business. With an intention of ensuring supplies from Balaji Distilleries Limited (BDL), having brewing facilities in Tamil Nadu, the company has entered into an agreement with the promoters of BDL to secure to the company perpetual ...More Info


Africa: SABMiller spending $370 mln on capex in Africa

World’s second-largest brewer SABMiller plc is spending $370 million on capex in Africa, Reuters reported on October, 28.

The London-based brewer of Miller Lite, Peroni and Castle beers said it was keen to snap up the Africa business of French drinks group Castel, adding it had the rights to do so.

"We are spending $370 million on capex this year. After that, it will halve to $200 million. We think it's sustainable capex," Mark Bowman, SABMiller Africa's Managing Director, said at a media briefing.

"Our partnership with Castel in Africa is now an alliance. Obviously if they decide to sell we will be keen. We have rights to do that."

He added that the brewer is spending $130 million in Angola, $50 million each in Mozambique and Tanzania and $37 million in Sudan. Overall, it intends to open four new breweries in Africa during its current financial year to March 2010.

The group will commission at the end of the year a second brewing plant in Angola, which will be the biggest in Africa outside South Africa, while it has also commissioned new breweries in the three other African countries.

In Africa, SABMiller's brewing and beverage operations cover 14 countries with a further 19 ...More Info


Mexico: Grupo Modelo’s total volume sold increases by 3.2% in the third quarter of this year

Grupo Modelo, S.A.B. de C.V. and Subsidiaries (“Grupo Modelo” or “the Company”), the leading brewer in Mexico and producer of the best-selling Mexican beer in the world, announced on October, 28 its financial and operating results for the third quarter of 2009.

During the third quarter, total volume sold reached 13.7 million hectolitres, which represents a 3.2% increase compared with the same period of the prior year. Volume in the domestic market totalled 9.4 million hectolitres, which represents a 7.0% growth compared with the third quarter of 2008. The volume sold of domestic brands registered a strong increase of 7.6%, driven by the implementation of the company’s initiatives to improve its execution in the market, as well as the benefit of favorable weather during the quarter. The imported brand portfolio decreased 14.0% as a consequence of the price increase carried out in the first semester to compensate part of the exchange rate depreciation.

Export volume totalled 4.3 million hectolitres, a 4.4% decrease with respect to the same period of 2008 as a result of the economic crisis which has affected consumption in the different export markets. It is important to highlight that the year over year change in volume in the last ...More Info


Russia: January – September beer production declines by 7.9%

Russia’s beer production decreased by 7.9% to 83.8 mln hl in January – September this year, the Union of Russian Brewers reported on October, 28.

The most important decline was registered in August – the production volume in August 2009 declined to the level of the same month in 2005, the Union said without giving precise data. The August drop has been provoked by the news about the impending beer excise increase.

Retail beer sales declined by 6.9% to 76.35 mln hl over the reporting period.

Russia’s malt production suffered from a more drastic decline in January – September 2009 – minus17.6% to 875,075 tonnes, Pivnoe Delo reported on October, 26.


The Netherlands: Heineken looking at all markets for expansion - CFO

Dutch brewer Heineken isn't only interested in emerging markets for future expansion, Chief Financial Officer Rene Hooft Graafland was quoted as saying by Dow Jones on October, 28.

"We are not specifically looking at mature markets or developing markets," Hooft Graafland said during a conference call for analysts.

He declined to comment on recent reports that Heineken is in talks to buy the beer division of FEMSA, Mexico's second-largest brewer. "We judge M&A opportunities on value and whether we can gain a number one or number two position," Hooft Graafland said. "We are also looking at the potential for our Heineken brand."

Heineken's financial chief said the company won't make any debt-financed acquisitions if this raises the firm's net debt to earnings before interest, taxes, depreciation and amortization ratio above 3.5.

In the first half, Heineken has lowered its net debt/Ebitda ratio to 3.1 from 3.3, Hooft Graafland said. "We expect to achieve a better level by the end of this year," he said.

Heineken is digesting debt from last year's acquisition of the U.K.'s Scottish & Newcastle, which it bought for EUR10.34 billion in a joint deal with Danish rival Carlsberg AS.

Earlier on October, 28, the Dutch company gave an ...More Info


Barley News

Canada: Canadian Malting Barley Technical Centre releases list of malting barley varieties recommended for 2010-11

The Canadian Malting Barley Technical Centre (CMBTC) released on October, 23 its Recommended Malting Barley Varieties List for 2010-11.

These recommendations are based on the varieties expected to be selected by grain and malting companies for both domestic and export markets from the 2010 harvest, CMBTC said.

"These recommendations were derived from information CMBTC members obtained through their sales and marketing efforts and contact with domestic and international maltsters and brewers, as well as from test malting and brewing results achieved at CMBTC in their Pilot Malthouse and Pilot Brewery," said CMBTC Managing Director Rob McCaig.

Recommended two-row barley varieties are AC Metcalfe, CDC Copeland, CDC Kendall, and Newdale. Bentley, CDC Landis, Major, CDC Meredith, Merit 57, Norman, and CDC Reserve are not yet being grown for the commercial market. Production is limited to quantities required for testing and market development. CDC PolarStar will reach commercial scale levels this year, CMBTC said.

Recommended six-row barley varieties are Legacy, Tradition, and Stellar-ND. Celebration, CDC Clyde, CDC Kamsack, CDC Laurence, and CDC Mayfair are not yet being grown for the commercial market. Production is limited to quantities required for testing and market development. Please talk to local malting company selector in regards to demand for CDC ...More Info

Scientific Digest

Monitoring of Brewing Yeast Propagation Under Aerobic and Anaerobic Conditions Employing Flow Cytometry

J. Novak, G. Basarova, J. A. Teixeira and A. A. Vicente

Abstract:
J. Inst. Brew. 113(3), 249–255, 2007 The vitality and viability of industrial strains of Saccharomyces cerevisiae was monitored during pilot plant experiments simulating yeast propagation under aerobic and anaerobic conditions. Industrial wort of 12°P original gravity was used as a growth substrate for yeast propagation. The work was carried out with three widely used Czech lager yeast industrial strains: strains 2, 7 and 95. Cell cycle, cell size, granularity, glycogen content, DNA and protein content were analyzed by flow cytometry. Significantly higher specific growth rates, higher content of yeast glycogen, earlier G2/M phase cells maximum, and faster cell protein creation was observed under aerobic conditions compared to anaerobic. Strains 7 and 95 showed losses in flocculation ability after aerobic propagation compared to anaerobic propagation. Under either aerobic or strictly anaerobic conditions, only strain 2 did not show a significant loss in flocculation ability. Key words: Cell cycle, fluorescent methods, proteins, yeast glycogen, yeast propagation. Load full article, 7 pages, 1265 kb , PDF file

Barley Prices
EURO = USD 1.4857 October 28, 2009  
 Crop year   2009   2010 
 Parity   FOB Creil   FOB Creil 
 Position   July 2009   July 2010 
Type   Variety  EURO  USD  EURO  USD 
2RS  Scarlett  101.00  150.50  120.00  178.50 
2RS  Prestige  100.00  148.50  119.00  177.00 
2RS  Cellar  99.00  147.50  118.00  175.50 
2RS  Sebastien  98.00  145.50  117.00  174.00 
2RS  Tipple  98.00  145.50  117.00  174.00 
2RS  Henley  98.00  145.50  117.00  174.00 
6RW  Esterel   96.00  143.00  111.00  165.00 

French Feed Barley Prices. Nominal prices
EURO = USD 1.4857 October 28,2009
Crop year 2009
Parity FOB Creil
Position July 2009
Type EURO USD
Feed Barley 96.00 142.63


Theoretical Malt Prices

  EURO = USD 1.4857 October 28, 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  286.50  425.50  317.50  472.00  310.00  460.50  324.50  481.50 
2RS  Prestige  285.50  423.50  316.50  470.00  308.50  458.50  323.00  479.50 
2RS  Cellar  284.00  422.00  315.50  468.50  307.50  457.00  321.50  478.00 
2RS  Sebastien  282.50  420.00  314.00  466.50  306.50  455.00  320.50  476.00 
2RS  Tipple  282.50  420.00  314.00  466.50  306.50  455.00  320.50  476.00 
2RS  Henley  282.50  420.00  314.00  466.50  306.50  455.00  320.50  476.00 
2RS   Average price  284.00  422.00  315.50  468.50  307.50  457.00  321.50  478.00 
6RW  Esterel   279.50  416.50  311.50  462.50  304.00  451.50  318.00  472.50 
Asia Malt 70/30  283.00  420.50  314.00  466.50  306.50  455.00  320.50  476.50 
**  Asia Malt 50/50  282.00  419.00  313.50  465.50  305.50  454.00  320.00  475.50 


EURO = USD 1.4857 October 28, 2009 
Crop year  2010 
Parity  FOB Antwerp 
Position  Oct 2010 - Sept 2011 
Conditioning  Bulk   In bags  Bulk containers Bags, containers
Malting barley variety  EURO  USD  EURO  USD  EURO  USD  EURO  USD 
2RS  Scarlett  309.50  460.00  341.00  506.50  333.00  495.00  347.50  516.00 
2RS  Prestige  308.50  458.00  339.50  504.50  332.00  493.00  346.00  514.50 
2RS  Cellar  307.50  456.50  338.50  502.50  330.50  491.50  345.00  512.50 
2RS  Sebastien  306.00  454.50  337.00  501.00  329.50  489.50  343.50  510.50 
2RS  Tipple  306.00  454.50  337.00  501.00  329.50  489.50  343.50  510.50 
2RS  Henley  306.00  454.50  337.00  501.00  329.50  489.50  343.50  510.50 
2RS   Average price  307.50  456.50  338.50  502.50  330.50  491.50  345.00  512.50 
6RW  Esterel   297.50  443.50  330.00  490.00  322.00  478.50  336.50  499.50 
Asia Malt 70/30  304.50  452.50  336.00  499.00  328.00  487.50  342.50  508.50 
**  Asia Malt 50/50  303.00  450.00  334.00  496.50  326.50  485.00  340.50  506.00 

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

South America`s Leading Beer Markets 2008
Country Beer Production
(in mln hl)
Per Capita Beer
Consumption
(in litres)
Market Leaders
Brazil 106300* 57 AmBev (AB InBev)
Shincariol
Kaiser (FEMSA)
Petropolis
Venezuela 24905 101 Polar
Regional
Colombia 19000* 43 Bavaria (SABMiller)
Argentina 15500* 41 Quilmes (AB InBev)
CCU (Heineken)
Peru 10800 36 Backus&Johnston (SABMiller)
AmBev Peru (AB InBev)
Chile 5870 35 CCU (Heineken)
CIA (AB InBev)
Note: * - Estimate
Graph of the Week



These Days in Business History
October 26
1952 Chevrolet unveils V-8 engine
1954 Walt Disney's 1st television program, "Disneyland," premieres on ABC
1956 U.N.'s International Atomic Energy Agency statute approved

October 27
1969 Nobel prize for economy awarded to John Tinbergen
1984 Hepatitis virus is discovered
1997 Intel Corp buys Digital Equipment for $700 million

October 28
1904 St Louis police try a new investigation method- the fingerprints
1954 Nobel prize for literature awarded to Ernest Hemingway
1986 International Red Cross ousted from South Africa
Agenda