Dutch brewer Heineken N.V. announced on December, 7 it had signed a new shareholders’ agreement with Dr. Vijay Mallya and United Breweries Limited (“UBL”) and agreed the key terms for the brewing and distribution of the Heineken brand in India.

The new agreement creates a strong partnership that will drive growth in one of the world’s fastest growing and most exciting beer markets, the Dutch company said.

As part of the new agreement, Heineken will acquire APB India and in a subsequent transaction intends to transfer this into UBL during 2010.

Heineken also announced that it has strengthened and enlarged Asia Pacific Breweries Ltd (“APB”), its successful joint venture partnership with Fraser and Neave Ltd (“F&N”) through the transfer of Heineken’s controlling interest in PT Multi Bintang Indonesia (“MBI”) and Grande Brasserie de Nouvelle-Calédonie S.A. (“GBNC”). This will create a more profitable business and a stronger platform for growth in South East Asia and the Pacific Islands.

Heineken expects that the effect of the transactions will be broadly neutral at net profit (beia) level. As a result of the transaction, an exceptional book gain of EUR 145 million before tax will be realised in 2010. Consolidated net debt is expected to be ...More Info

Speculation is mounting that drinks giant Diageo has shown a tentative interest in acquiring some or all of Latin American conglomerate FEMSA's beer business, possibly as part of a consortium with another bidder, The Telegraph reported on December, 9.

The families that control FEMSA put its beer business, which includes brands such as Sol, on the market several months ago. Analysts expect the division to change hands for between $7.5 bln and $9 bln.

SABMiller has been tipped as the most likely buyer of FEMSA's beer unit and sources said it is in more advanced negotiations than rival bidders, such as Kirin, Heineken and Sapporo.

However, on December, 8, Credit Suisse analysts warned that a deal would not be that great for SABMiller if it fails to buy FEMSA's convenience store chain, Oxxo, that sells its beers.

"FEMSA Cerveza bought on its own may present serious challenges to SAB over time that may not be apparent after a transaction that is greeted positively by the market," said Credit Suisse.

Baltika Breweries announced on December, 9 that on 2 December 2009, the conclusion of a license agreement for production of Baltika brands at DERBES Brewery Ltd in Kazakhstan was approved via absentee balloting at the Extraordinary General Shareholders Meeting.

The decision was supported by more than 97% of shareholders participated in the vote.

Anton Artemiev, President of Baltika Breweries: "The result of the shareholders’ meeting has once again served to confirm the course of development for the company’s business in foreign markets. The conclusion of the license agreement will create additional opportunities to strengthen our brand portfolio in Kazakhstan, thus improving the company’s leading position in this attractive market."

Imrich Havris, President of DERBES Brewery Ltd: "The conclusion of this agreement and our close cooperation with a company as big as Baltika opens up ample opportunities for exchange of experience, and will also allow for an increase in the overall level of production of the company. Licensed production of Baltika’s brands will lead to an increase of the loading of our capacities and correspondingly the staff workload."

Complete unity in operating procedures for marketing, distribution, and sales for Baltika and DERBES is planned in the near future. This step marks an important stage in ...More Info

Danish beer giant Carlsberg has decided against constructing a new plant in Ukraine, Interfax-Ukraine reported on December, 8.

Previously, Ukrainian media said Danish company was planning to invest $USD 30-40 million in the construction of a new facility in the Kharkiv region.

“We are not going to consider this project in the nearest future as we do not expect the nation’s beer consumption to increase,” Slavutich Carlsberg Group CEO said.

Moreover, in a press release published this week, the company said it may consider closing one of its plants in Ukraine, if the government increases pressure on the brewing industry.

According to Carlsberg, the Ukrainian beer market is the second largest in the CIS, the former Soviet Union. Since 1998 the consumption of beer per capita has been increasing. In 2008 it reached 64 litres. Compared to neighboring countries, this is relatively small figure and considerable further increase is still expected, analysts said.

In the super-premium segment Carlsberg Group brand Tuborg has taken the number one position with market share of 52% within the segment. Another Carlsberg brand Baltika has become a leader of premium segment with market share of 30% within the segment. Main local brand Slavutich sales increased by +28.5% in 2008.

In November activity in the EU malt markets was remarkably good, however, negligible in international malt trade, industry observers reported at the beginning of December.

EU brewers purchased already a large part of their malt demand for 2011, German maltsters speak of 65 to 75%.

There were some vague enquiries from Brazilian brewers, but no EU sales were reported to overseas destinations. Some larger transactions were reported from Mercosur, Argentina to Brazil.

The large groups are well covered by their long-term agreements, but also purchased some lots of their open demand inside Europe. InBev U.K. was reported to have held an internet tender for a small lot for delivery inside the U.K., but the result is unknown yet.

There is still quite a large demand open for 2010, in Asia, Africa and particularly in Brazil. The open quantities, however, are firmly installed in the malt industry’s planning, and do not present new opportunities.

There is much speculation about the barley acreage in 2010, experts informed early in December.

Reports of 5% less acres seem to be very wrong. In the U.K. alone it is expected that increase of 14% in 2009 will be lost again, an additional reduction is deemed possible. Germany expects up to 20% less, estimates in France are pessimistic for the Beauce-Gatinais region, but point to a good acreage in the Champagne. Danish sources speak of 10% less spring barley.

A smaller total barley crop would not pose any problems, but smaller availabilities of spring malting barley would stabilize barley and malt markets, experts said.

Markets are ahead of next year’s crop results. Prices for malting barley of crop 2010 in Denmark, France, Germany and the U.K. are EUR 26,- to 30,- per ton above the levels of old crop barley. One must admit that those new crop prices are the minimum level to keep the production of malting barley alive, otherwise changes to the production of wheat, maize, rapeseed, pulses etc. will accelerate, experts said.

In that context it is most interesting to note that markets for the crop 2011 are again EUR 20,- higher. Malting barley demand in ...More Info

As the Australian harvest is well advanced, but not finished yet, the results are preliminary and may have to be corrected later on, analysts commented earlier this month.

The crop is a disappointment, the local demand will be covered, though it will need more inter-state trade than normal, possibly even from the West to the South and Victoria, experts state.

The export surplus of 1st and 2nd grade malting barley will be somewhere between 0.5 mln and one million tons. Estimates are that 500,000 tons have already been sold to China.

Now farmers are holding back their barley, exporters are short and markets appreciated by US$ 40,- to 50,- within a short time, it is reported.

Farmers in France, Europe's biggest grain grower, have switched into soft wheat and durum at the expense of barley, which is in even more plentiful supply than had been thought, FranceAgriMer communicated recently.

Winter barley plantings are down an estimated 4.0% to 1.26 mln hectares in the face of prices which have dropped sufficient to run into European Union intervention buying levels.

French farmers have been, after their German peers, the biggest users of intervention buying – which is being suspended next year - offering 313,100 tonnes last month.

And French barley supplies look even richer than had been thought, with AgriMer raising by 433,000 tonnes its forecast for stocks at the end of 2009-10, thanks to a better harvest than had been thought and weaker exports.

At 3.80 mln tonnes, they will be more than twice those at the start of the season.

Forecasts for Europe's barley stocks were already "pointing to very volumes of supply, pushing down the price and reducing the chances of a bounce back", French consultancy Agritel said in a report earlier this week.

"Only a weather alert for the 2010 harvest could underpin quotes", Agritel said.

Christian Pecher, Flottweg AG

Paper based on a lecture given at the ARFB study day,
Meurice, Brussels, October 12th 2007

ABSTRACT As a result of various waste disposal regulations coming into force, dumping or open ground tipping of organic waste with total organic carbon content (TOC) exceeding 5% will be prohibited. Therefore, industry has now to look for ways in which waste substances from breweries can be used efficiently. The present paper investigates the possibility of using the spent grain as source for thermal energy. Benefits of spent grain combustion are discussed, presenting cost savings, taking into account byproducts like ash used as fertilizer additive and biogas production from presswater. Side-effects on beer quality are also considered.
Cerevisia, 33 (1) 2008 http://www.cerevisia.eu