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

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'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’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

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

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’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.

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

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

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