The new year started with very negative beer figures in major markets, as Germany reported a 10% decrease in beer sales, USA – a decline of 8.2%, whereas Russia’s beer sales plummeted by 44.2%, a research note said earlier this week.

Canadean forecasts a 12% drop of Russian beer sales in 2010.

Plato reported an output decline of 0.1% in 2009 worldwide and expects a growth of 3% this year.

More than 50% of the world beer market are held by the four large groups, AB InBev with 350 mln hl, SABMiller with 250 mln hl, Heineken 200 mln hl and Carlsberg 125 mln hl. These brewers reported good financial results for their past financial years, however, coupled with losses of organic beer sales. Also Tsingtao of China and Modelo of Mexico show excellent profits. The latest event in the rapid concentration of the world’s brewing industry had been the acquisition of Femsa, Mexico, by Heineken.

Thai Beverage Plc (ThaiBev) posted its 2009 financial results on February, 26.

The brewer’s consolidated sales revenue increased by 2.4% to 107.97 bln baht in 2009, though EBITDA decreased to 19.91 bln baht from 20.61 bln baht in 2008. The net profit belonging to the company (less minority interests) grew by 2.2% to 10.57 bln baht.

ThaiBev’s beer sales volume decreased by 26.1% to 571 mln litres. Sales revenue from its beer business declined by 21.5% to 30.2 bln baht and the net loss constituted 1.63 bln baht (versus net profit of 338 mln baht in 2008). EBITDA decreased by 113.8%.

The company’s performance in USA was driven by Chang Beer sales increasing by 40% when compared to 2008 as per its goal, despite the total Import Beer category declining by 9.2%.

Danish brewery group Carlsberg hopes to raise its market share in Ukraine to over 30 percent in 2010 based on positive development in the past year, country manager Peter Chernyshov was quoted as saying by Business.dk on March, 2.

In the past year, the company managed to increase its share in Ukraine, considered to be the second most important market in eastern Europe, to 28.9 percent from 25.5 percent.

Carlsberg is content that it has succeeded to raise prices considerably, Chernyshov, who is chief executive of Carlsberg Ukraine, said.

According to the executive, beer consumption in Ukraine could grow by over 30-40 percent in the next decade.

This year there is uncertainty around beer taxes but in the long term consumption in Ukraine will approach the western European level, Chernyshov added.

SABMiller’s Polish subsidiary managed to increase its market share significantly in spite of the industry’s dip in sales, the world’s second-largest brewer communicated on March, 1.

In 2009, Kompania Piwowarska SA reached the sales of 14.6 mln hl on the national market. This result is 3% lower than the one registered in the previous year. Overall, the industry's sales decreased in Poland within that period by 10% and reached circa 32.2 mln hl. The decrease was mainly a result of the increase of excise tax (by 13.6%) introduced in March 2009, which strongly influenced beer price.

Within the 12 months of 2009, KP increased its market share of the Polish beer market and reached the level of 45.3% (from 42.2% in 2008) thus expanding its advantage over their closest competitor by more than 10%.

All the main brands of Kompania Piwowarskaj increased their market share. Tyskie is the best selling Polish beer and it increased its market share to 18%, while the second place in the national market is occupied by Żubr (market share of 14%). Lech is the third best selling beer from the KP portfolio, with a market share of 8%.

Kompania Piwowarska is the biggest brewing enterprise in Poland. ...More Info

Baltika Breweries, Russia’s largest beer maker, said in its Q4 2009 report it produced more than one third of the nation’s total beer output last year.

Baltika’s market share increased by 1.8% to reach 40.6% in 2009. It’s domestic beer sales decreased in the full year by 6.4% to 3.96 mln hl. In the last quarter of the year, the company’s domestic beer sales grew by 0.8% to 0.9 mln hl.

Baltika said it strengthened its positions in the premium and super premium segments of the market. According to Business Analytica data, the brewer’s share of the super premium segment grew by 2.5% to 37.3%, whereas its share of the premium segment added 0.7%.

Guinness Anchor Bhd (GAB) is aiming to achieve 60% share of Malaysia's beer and stout market this year, higher than its 57% share last year, marketing director Mark Jenner was quoted as saying by The Edge on March, 2.

"Since 2002, we have been growing (our) market share for eight years consecutively," he said, adding that the growth was spurred by a potent combination of brands.

GAB's prominent brands include Tiger, Guinness and Heineken. Jenner said among the three brands, Tiger contributed almost half of its sales for the beer and stout category.

"I am convinced that GAB can make Tiger the biggest beer in the country," Jenner said.

He said the Year of the Tiger had a beautiful link with the name of the beer which would encourage greater competitiveness and growth in strength in order to "win".

With the 2010 FIFA World Cup in June and July, Jenner said GAB would carry out a series of promotions to keep the sales momentum going.

Jenner said GAB had a "pretty good number" of sales outlets for its brands with a total of 12,000 coffee shops, restaurants, food courts and pubs on its list. One of the factors contributing to GAB's sales growth was the loyalty ...More Info

In their annual outlook conference the CWB predicted a world crop of 138 mln tonnes of barley in 2010 vs. 144 mln tonnes last year.

For Canada, the CWB forecasts a crop of 9.2 mln tonnes vs. 9.5 mln tonnes in 2009.

Canada’s malting barley sales to China should increase significantly this year, exceeding last year’s program of just under 400,000 tonnes, according to the CWB’s senior barley marketing manager Bob Cuthbert.

Even with reduced malting barley content in Chinese beer, demand for the ingredient is expected to rise to keep up with increased beer production. This year, two factors are working in Canada’s favour in terms of accessing the Chinese market. First, Chinese production of malting barley was down significantly this year, so brewers require more imported malting barley to keep pace with demand. Second, the poor quality Australian crop has reduced competition from one of the world’s major malting barley exporters, the CWB said.

Cuthbert also noted the price spread between domestic Chinese malting barley and western Canadian malting barley has narrowed, as world malting barley prices have dropped. Even so, price is still the major limiting factor in sales to China.

The USDA published long-term projections till the year 2019/20 with a ...More Info

Current price levels of two-row spring barley are: France, basis July 2009 resp. 2010, FOB Creil, crop 2009 EUR 97,-, crop 2010 EUR 121,- for shipment Jan-June 2011.

As old crop barley would cost EUR 107,- in July, 2010, there is a grey zone for shipment positions between harvest and December, 2010. There is very little demand for this period, and prices are guesstimated between EUR 110,- and 115,-, industry sources said.

The price difference between delivery positions must become smaller and eventually disappear, experts believe.

Crop 2011 is quoted EUR 20,- above crop 2010, i.e. EUR 140,- to 142,-.

The other markets also show the steep increase of prices from old to new crop (Prices are valid for the given month, not for basis July): Denmark, March Fob seaport, EUR 107, new crop November EUR 121,- Jan-April 127,-. U.K. quotes are almost identical. German barley, delivered maltings, March EUR 118,-, new crop ex harvest 126,- October 138,-.

Barley trade in the present crop year is dominated by Russia and the Ukraine, and shipments from Black Sea are anticipated to remain at a level of 8 mln tonnes also in 2010/11, an analysts research note communicated on March, 1.

EU’s surplus is estimated at 16 mln tonnes of barley, including 5 mln tonnes in intervention and 5 mln tonnes minimum end stocks.

Provided good or average crops there will be an enormous pressure on feed barley price levels in the Middle East and North African markets. Present levels are US$ 140,- ask FOB Black Sea and EU ports, but down to 136,- bid.

In last week’s tender Turkey sold 100,000 tons at prices between US$ 145,- and 153,-. Turkish white barley is worth a premium of US$ 10,- in the Saudi Arab market.

Brussels sold 61,000 tons of intervention barley so far against its sales tender of 925,000 tons, industry sources reported at the beginning of this week.

Present gross stocks of 2.5 mln tons and applications of 1.9 mln tons add up to 4.4 mln tons of barley in or almost in intervention to-date.

Exports have picked up a bit, total certificate bookings since July 2009 are 489,000 tons.

Feed barley offers delivered French seaports are EUR 90,- basis July 2009, equal to US$ 140,- FOB, March/April, at today’s dollar exchange (1.36). These prices are far below the EU intervention level, but farmers and coops need to empty their silos ahead of the new crop. Intervention barley may be left in the originators’ silos and would block new crop procurements, experts said.

New crop feed barley is bid EUR 110,-, Sept-Dec, CIF Holland, equal to EUR 92,-, July, FOB Creil.

A. DEBOURG, M. FONTEYN, F. HARMEGNIES AND L. VAN NEDERVELDE

ABSTRACT Several conventional malt analyses are done to measure parameters which could influence mash filtration. Nevertheless, they are difficult to integrate in a system allowing predicting processability and brewhouse performances of the malt. In this collaborative study a method developed by Meura for measuring filterability coefficient in a laboratory scale filtration has been tested and results were compared to malt behaviour in industrial mash filter process. Results were correlated to some malt analytical characteristics.
Cerevisia, 34 (3) 2009 http://www.cerevisia.eu